Crypto’s “improvements” over traditional stocks include:
* lack of regulation comes with lack of enforcement of rules as well. If you get ripped out, there’s no one that can help you, that is by design.
* cult-like behaviour and manipulation. Crypto users are lured into forums that use their own language and memes (“line goes up”), there’s a strong dense of “us” versus “the rest”, commenting isolation. Celebrities and influencers are paid to promote. People in these groups start following “advice” and end up “having to buy in”… and then the head of the pyramid cashes out, and they are left without anything.
I’m not saying this kind of thing doesn’t happen in traditional finance, but crypto has taken it to the next level.
* lack of regulation comes with lack of enforcement of rules as well. If you get ripped out, there’s no one that can help you, that is by design.
* cult-like behaviour and manipulation. Crypto users are lured into forums that use their own language and memes (“line goes up”), there’s a strong dense of “us” versus “the rest”, commenting isolation. Celebrities and influencers are paid to promote. People in these groups start following “advice” and end up “having to buy in”… and then the head of the pyramid cashes out, and they are left without anything.
I’m not saying this kind of thing doesn’t happen in traditional finance, but crypto has taken it to the next level.