Author: Wall Street News

On the 28th, Ritholtz Wealth Management LLC analyst Ben Carlson wrote an article entitled For Is It Too Late to Buy Bitcoin? "The article believes that many people are now eager to try Bitcoin investment, often because the price has risen sharply and are influenced by FOMO emotions, forming a mentality of blindly chasing the rise.

He suggested that when considering cryptocurrencies, investors should ask themselves why now To enter the market, stay calm and make rational judgments, and do not blindly follow the trend just because the price has risen.

“I can calculate the movement of celestial bodies, but I cannot calculate the madness of human beings”

Bitcoin has skyrocketed in recent days. Investors, driven by FOMO emotions, have begun to wonder whether they have missed out. This wave of rising prices.

In this regard, Carlson said that investment decisions caused by blindly following the trend may bring huge risks, as the experiences of many famous investors in history have warned. That way - even a generation of scientific giants like Isaac Newton couldn't escape the emotional trap in investing.

In 1712, the shares of the British South Sea Company skyrocketed in a short period of time. Newton, a mathematician, physicist and astronomer, made a small profit when he first invested in South Sea Company shares. After tasting the sweetness, he invested more money again until the bubble burst.

In the end, he lost between 10,000 and 20,000 pounds in the South Sea Bubble, which is about 20 million pounds today. Newton felt deeply regretful at the time and once said:

"I can calculate the movement of celestial bodies, but I cannot calculate the madness of human beings."

Newton's South Sea Company investment is not just a story of financial bubbles, but also a reflection of human fragility in the face of market sentiment. Similar situations were common in the centuries after Newton, especially in the stock market, real estate, and other high-risk investments. Every time the market surges, there are often irrational bubbles hidden behind it.

Keep calm, make rational judgments, and avoid FOMO psychology dominates decision-making

Carlson pointed out that the rising price of Bitcoin has attracted the attention of a large number of investors, but investors need to think rationally and examine their own motives for entering the market. Many people are only now interested in Bitcoin, often because the price has risen sharply, forming a mentality of blindly chasing the rise.

This kind of behavior often causes investors to fall into a vicious cycle of "chasing the rise and killing the fall". The price of Bitcoin could continue to rise, but it could also plummet due to a market correction.

He believes that although investing in high-risk assets such as Bitcoin may bring huge returns, it is also full of uncertainty. Rather than relying on impulsive decisions driven by FOMO, it is better to adopt a rational and steady strategy and not be swayed by short-term market fluctuations. After all, historically, many great investors have incurred intolerable losses precisely because of their overreliance on emotion and short-term market movements.

For investors considering investing in Bitcoin now, Carlson warned: If you decide to enter the market now, it may just be due to the skyrocketing price and FOMO psychology. . This kind of emotion-driven investment is often difficult to sustain.