1. Survivorship Bias

  1. People see stories like:
    “I bought Dogecoin at $0.002 and now I’m rich!”

  • What they don’t see: the thousands of people who lost money chasing the same dream.

  • Our brains focus on the success stories, not the wreckage.

2. Fear of Missing Out (FOMO)

  • Crypto moves fast. Seeing others get rich triggers:
    “If I don’t get in now, I’ll miss the next Bitcoin.”

  • FOMO clouds judgment and leads people to invest emotionally.

3. Gambling Mindset

  • Many people treat crypto like a lottery ticket, not an investment.
    “It’s only $10… what if it 100x’s?”

  • It scratches the same itch as slot machines: high risk, high reward, fast excitement.

4. Lack of Financial Literacy

  • A lot of new investors don’t understand market fundamentals.

  • They chase charts, tweets, or influencers, not value.
    “This coin has a cool name and Elon Musk tweeted it!”

5. Social Media Hype

  • Reddit, TikTok, YouTube — full of hype and moon talk.

  • Influencers say:
    “This is the next Bitcoin! Just $1 now — imagine when it hits $100!”

  • People confuse market cap with price per coin, thinking “cheap” = “undervalued.”

6. Hope as a Coping Mechanism

  • In uncertain economies, crypto becomes a symbol of escape:
    “This coin could change my life.”

  • For some, it’s not greed — it’s desperation.

⚠️ Reality Check

  • Most coins never go up significantly.

  • Many are scams or pump-and-dumps.

  • The odds of becoming a millionaire from a single coin investment? Tiny.

✅ Healthier Approach:

  • Invest in things you understand.

  • Diversify.

  • Don’t bet money you can’t afford to lose.

  • Avoid chasing hype. Instead, build long-term conviction.