Every innovation has a certain charm, an appeal that makes it seem coveted and incredible, a vaunted object that turns into an obsession thanks to its presentation as a mark of status. It does not matter what the item is, in fact, it just has to be unique, or have the semblance thereof. It is precisely the concept of scarcity that is at play in such circumstances, acting on the desire to stand out through ownership of a coveted idea. Pure psychology used to the extreme by the power of marketing and advertising. All one needs to do is take a look through the ages of human history to realize that the concept has not changed, nor will change, as it is inextricably linked to human nature.
We can all but imagine what it was like when the first caveman got the idea of making some semblance of a necklace for a cave woman and gave it to her as a gift. The consequences were certainly favorable for the caveman, but may have also led to internal strife within the tribe out of jealousy, or overall fascination, or both in rapid succession. The same concept can be traced through later ages as human civilization developed and created relics, artifacts, treasures and other coveted items that became either national symbols or the stuff of legends.
A shining example is the infamous Koh-i-Noor diamond, a stunning jewel with a long and turbulent history. Legends state that the diamond was mined in the middle ages in India and then acquired by the Borgia for its stunning size and beauty. The diamond was also in the possession of the Great Mughal emperors and then belonged to Nadir Shah of the Afsharid dynasty. The diamond passed from hand to hand all the way until it ended up in British possession as part of the collection of crown jewels. The legends surrounding the diamond all focus on a single fact – everyone wanted to possess it, because it was truly unique due to its size, pristine clarity and value.
The same story can be repeated with regards to other items throughout human history, as the desire to posses something that makes the owner stand out as a mark of status is part of human nature. This trait is also a great weakness that is brutally exploited by marketers and advertisers the world over. By skillfully playing on the human mind’s ability to merge the visual appeal of an object with its suitability to one’s self, marketers display items they are selling in countless numbers as unique items that endow their owner with a unique trait. Naturally, such a privilege must come at a high price.
If we ever pay attention to television commercials of items of luxury, such as expensive cars, we will notice the impeccably woven traces of insinuation in the lines of the advertising. They all focus on the driver’s uniqueness, their status, social standing and exclusivity that will be in their possession the moment they sit behind the steering wheel of a specific model. Naturally, all surrounding eyes will be drawn in awe at the driver, whose self-satisfied smile implies how their personal ego is pampered by such attention on the part of society. It would be a lie if one said they do not desire such attention, as that is also an innate trait among humans – the desire to stand out and receive recognition.
Some would argue that such tricks cannot be applied to all markets and products, but it would be untrue. If the cryptocurrency market is to be taken as a striking example, it will become obvious that advertising leverages the same principles and human desires. One need but take a fleeting glance at the slew of advertising campaigns that were launched during the ICO era to realize how human egos were exploited for the purpose of attracting capital to projects, both truly revolutionary and outright fraudulent.
Calls to join the digital revolution, become a pioneer of blockchain innovation, support the digital breakthrough, become part of a unique and groundbreaking project, join a group of elite investors, etc. were all employed to play on the self-gratifying feelings of both seasoned investors and newcomers into the turbulent and unregulated digital space. It would be redundant to say just how brutally effective such advertising campaigns were, since the leading trait ensuring their success was the hype.
Indeed, the hype factor is precisely what follows every innovation and acts as a trampoline for its success in terms of capitalization. Whether the boost upwards ends in a swift and painful descent is a matter up to the developers of the project. If the crypto industry is to be taken as a benchmark in this regard, the year 2023 has proven that the effect of hovering in mid air amidst clouds of billions of dollars ended rather abruptly for some of the most skillful manipulators and speculators of the ICO era.
To Buy or Not to Buy
Bitcoin is a perfect example of hyped up item that can be called the pinnacle of advertising glory. Millions of people are searching daily for the query “how can I Buy Bitcoin?” without even realizing that the asset they are ready to shell out thousands of dollars for is intangible and has virtually no real-world application. Bitcoin is a speculative instrument, a purely market-bred product leveraging its decaying appeal left behind by the massive hype of its advent. Still, people are eager to buy Bitcoin in UK and other countries, believing that its volatility will make them rich.
Bitcoins are leveraging their popularity and giving reason to believe that their speculative nature can still yield profits. Market participants with capital to spend usually buy cryptocurrency in bulk, since that will guarantee a quick and massive profit in case the assets in question reach a price peak. For instance, such a scenario was observed in 2021 when users rushed to buy Dogecoin on the wave of Elon Musk’s tweets about the asset. As can be evidenced, his tweets were also a form of advertising, which used the trump card of his persona and status as a powerful incentive for other users to approach him through ownership of Dogecoin.
Vut with Bitcoin losing its price, many users are asking – “how can I make money now?” There is no way to make money quick on the cryptocurrency market anymore, since the hype factor has all but faded and the most in terms of yields that users can expect is a few percentage point gains. The DeFi sector and the GameFi industry give little reason to spend Bitcoin, as the products are paper-thin. Most exchanges that have remained standing offer almost similar services and exchange rates on cryptocurrencies, leaving little room for maneuver. As such, users have a choice of:
- Holding;
- Hoarding;
- Trading.
Before sending hard-earner cryptocurrencies, users must ask which of the given directions best suits their own mindsets. Privacy basics apply and the presence of numerous scammers on the market should raise users’ awareness and cautiousness of potentially fraudulent trading venues. Most legal exchanges will need to verify their users through Know Your Customer and other procedures, ensuring accountability of some form. And though the cases of FTX, Genesis, AAX and other exchanges prove otherwise and show miserably incompetent the legal framework of cryptocurrency market exchanges is, there are still legal exchanges out there that can be trusted.
Key Takeaways
Bitcoin is a currency that was supposed to revolutionize finance. However, it eventually turned into an advertised asset that leveraged services like cryptocurrency exchanges to capitalize on its status. And people bought into the advertising, which stated that Bitcoin would render them special and give them a mark of status. Whether it was so can be judged by the number of those who went bankrupt by believing the ads.
