HomeTechnologyWhat is why we invest in assets that we may not even...

What is why we invest in assets that we may not even know?

How much must the prize money be? So are you willing to risk your life for the opportunity to earn that money? For example, in Squid Game, when one player dies, the prize money increases by 100 million won, so the maximum return for risking life in a game of 456 players will be 45.6 billion won. Is that enough to motivate you to take risks and die? If you are interested in bitcoin trading, visit bitcoin champion to acquire an utter guide to crypto trading.

The answer will vary depending on the willingness to take risks (risk appetite) and the individual’s ability to take risks (risk capacity). But by nature, humans tend to avoid risks. Therefore, especially in the face of death, one would want to look for a ‘no-risk’ alternative, even if the reward was lost. It is why over half of the players in Squid Game decided to vote to end the game in the first place. But in the end, almost everyone returned to the game after facing the natural world and found that the risk of dying in the game might not be as bad as they thought.

Even though we ​​probably wouldn’t have the opportunity to get an invitation to play the Squid Game in real life, today’s world has many investment opportunities that invite us to risk losing money with enticing returns. Sometimes it can be a shell-shielded chain of modern innovations. According to celebrity tweets, some of them may be alternative assets whose value fluctuates overnight, including various stocks on the stock exchange that each price fluctuation makes your head scratch.

In this article, I would like not to discuss various ways to distinguish Pyramids from public investments. Reasons for Cryptocurrencies’ excessive Risk or techniques for selecting stocks in the market are that this content is countless on the internet. But I will invite you to understand through behavioral economics glasses three reasons why many people know that they are putting their own money at risk. But still decided to give it a try even though I knew in my heart that I might not get a refund for every baht and every satang

  1. Invest for fear of ‘missing opportunities’

In a world overflowing with information, we tend to plow our social media feeds with news pointing to how we get rich. Sometimes it’s a post of a high school friend who became a millionaire buying bitcoins—expert advice on farming in Defi (decentralized finance).

The more you read this content, the longer the day you enter. The more we feel, the more we feel irresponsible if we leave our money lying around in our fixed deposit accounts. And it is difficult to bear the risk of falling ‘train’ when it encounters an opportunity to generate huge returns on investments in cryptocurrencies that the gurus say will replace Bitcoin.

Investing by trend is similar to ‘Fear of missing something’, or FOMO, which stands for ‘fear of missing out, we are all afraid of missing out. Knowing that it’s a risk, we accept it because we can’t bear to look at ourselves in the mirror if we miss a golden opportunity and only watch our friends on feed become millionaires overnight. But let me tell you the sad truth: We can never become a millionaire by investing according to others. And having a large number of people join us doesn’t reduce investment risk at all. We have friends to comfort each other when the rewards aren’t as expected.

  1. Take risks with the confidence you have

Do we consider ourselves to be better or worse than average drivers?

Believe it or not, more than half of people answer questions claiming they are ‘driving better’ than average. For example, a survey in the US found that two-thirds of Americans thought (by them) they drove better than others. But such survey results are not feasible in the real world because people who ‘Driving better than average’ will never be more than 50 percent.

Self-confidence is a critical skill that allows us to make decisions quickly and helps us make life easier. But overconfidence (overconfidence) is to think on one’s side that we are more innovative. So, for example, she has superior abilities and thinks (for himself) that there should be no problem investing money in high-risk alternatives because they can withdraw promptly before facing a crisis.

It’s this kind of confidence that makes us lose a lot of money. Even legendary investor Warren Buffett constantly tries to check himself for not being overconfident. But one of Buffett’s biggest mistakes was the overconfidence that he acquired the Dexter Shoe business in 1993 after a successful acquisition of several shoe companies.

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