Bitcoin hodlers have a ‘Problematic Mindset’ says wealthbuilding guru Ramit Sethi

22 Nov, 2018
by Joeri Cant
News
Bitcoin hodlers have a ‘Problematic Mindset’ says wealthbuilding guru Ramit Sethi

Ramit Sethi, wealthbuidling guru and author of New York Times bestseller, 'I Will Teach You To Be Rich', said in a post for the Bussines Insider that cryptocurrency investors have a 'Problematic Mindset' because they are making investment desicions, based on emotional identity instead of rational analysis.

'Many of them don't treat bitcoin as an investment. Instead, bitcoin becomes part of their identity', Sethi said. 'When that happens, it becomes nearly impossible to change, even when they've lost a ton of money.'

According to Sethi, the reason many crypto investors insist on hodling is because to them, the act of investing in crypto is no longer the simple investment decision that it should be, but is has become a part of their identity.

'This is the same reason why people will publicly support a politician and when worse and worse behavior is revealed, they don't change their mind, but instead they actually double down.'

Sethi further states that this is what is happening to many crypto investors, who, instead of making the rational decision to exit the market, they double down on losing positions and end up losing lots of money.

Sethi, who has more than 1 million readers on his websites, says that the solution to this is for investors to 'keep their identity small'.

'Many people who get caught up in things like cryptocurrency investing, politics, or religion don't keep their identity small. They become crypto people, Republicans, Democrats, Libertarians — publicly! Once that happens, they're tied to it. They've publicly tied their identity to someone or something, and it would be psychologically devastating to change their minds now.'

He points out that it is important 'to carry out regular self-analysis'. In doing so it would be possible to avoid getting caught in the trap of becoming a 'crypto person.'

He ends his post by saying to 'be extremely cautious about the messages you tell yourself, because once you internalize it, you'll do anything to justify your choices.'

Do you agree that hodlers are having a problematic mindset? Let us know in the poll.

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Read more about: Bitcoin (BTC)

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