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RE: When did this happen?

in LeoFinance10 months ago

Regarding 1 in 3 Australians dabbling in crypto, it helps to recall that not everybody has an investment mindset. I have an anecdote to help me illustrate.

One of my co-workers does have an interest in finance in investing. However, he is learning about it in his 40s whereas I have been interested since I was in my teens. I've coached him through buying stocks. Eventually, he also dipped his toes into crypto. The thing is, like him, many people start off with $20 or maybe $100. At that level a 5% loss is not a big deal. On the other hand, a 5% gain is not a big deal either. Even a 20% change is not that significant.

It has taken him the better part of a year to realize that the numbers get exciting when you have larger bags. Gaining or losing 5% of $1000 or $5000 has different emotions than a $20 investment.

So, yes. Perhaps 1 in 3 Australians have dabbled. But, that doesn't mean that it was significant amounts. Many people start feeling anxiety if they have more than $100 "in the game". They feel much safer having money in the bank. Us LEOs know better. Yet, our mental template doesn't work with dabblers.

It's pathological with me, lately. I keep looking around for places to cut the budget to buy more crypto. This isn't how most people operate.

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It has taken him the better part of a year to realize that the numbers get exciting when you have larger bags. Gaining or losing 5% of $1000 or $5000 has different emotions than a $20 investment.

The small amount piques the interest and curiosity, so the larger investments can be made.

So, yes. Perhaps 1 in 3 Australians have dabbled.

I think it is much, much lower. In Finland, I work in a company where pretty much everyone has some level of stock exposure and in the IT field. There is probably less than 1 in 5 in crypto.

It's pathological with me, lately. I keep looking around for places to cut the budget to buy more crypto. This isn't how most people operate.

It is a funny old change in mindset. Hope it is catching.

I do recognize that people start out with small amounts just to figure out how things work. However, I think many people don't go past that. Fortunately, my co-worker has started increasing his deposits.

Cheers

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