CRYPTO CULTURE - PRICE LEADS NARRATIVE
Typical question-->
What came first the chicken or the egg? No one knows
And in Crypto in Narratives
Does the price lead the Narrative? Or does the Narrative lead the price?
Think about it well
Responses ON --> ✍️✍️✍️✍️
Everyone assumes that news and events drive price movements.
However, the concept of "the price leads the narrative" challenges this idea.
It suggests that the price moves first, and humans try to explain that movement by creating a story.
For example, if the price of Bitcoin drops significantly, people start thinking negative things, like that the economy is doing badly or that cryptocurrencies are useless.
But if prices go up, the same people get excited and say that cryptocurrencies are the future and that everything is going to improve.
This happens because we tend to focus on what just happened (we call it "recency bias") and look for patterns in prices.
There are people, called "contrarians", who think the opposite of the majority. The problem is knowing when to go with the flow and when to go against it, because the right moment (the "timing") is very difficult to get right.
Storytelling, creating a Narrative, a story around a crypto involves:
-Feeling more secure in the face of market uncertainty
-Having a VERY IMPORTANT social confluence
-Marketing on social media with high engagement = attention everywhere
#WLFI $WLFI $USD1
Typical question-->
What came first the chicken or the egg? No one knows
And in Crypto in Narratives
Does the price lead the Narrative? Or does the Narrative lead the price?
Think about it well
Responses ON --> ✍️✍️✍️✍️
Everyone assumes that news and events drive price movements.
However, the concept of "the price leads the narrative" challenges this idea.
It suggests that the price moves first, and humans try to explain that movement by creating a story.
For example, if the price of Bitcoin drops significantly, people start thinking negative things, like that the economy is doing badly or that cryptocurrencies are useless.
But if prices go up, the same people get excited and say that cryptocurrencies are the future and that everything is going to improve.
This happens because we tend to focus on what just happened (we call it "recency bias") and look for patterns in prices.
There are people, called "contrarians", who think the opposite of the majority. The problem is knowing when to go with the flow and when to go against it, because the right moment (the "timing") is very difficult to get right.
Storytelling, creating a Narrative, a story around a crypto involves:
-Feeling more secure in the face of market uncertainty
-Having a VERY IMPORTANT social confluence
-Marketing on social media with high engagement = attention everywhere
#WLFI $WLFI $USD1