What is “value”? Probably every single scientist from the fields of Economics, Finance and Business has tried to explain this.
In many cases, experts have had difficulties coming up with the best definition, probably due to not wanting to resort to Psychology or Neurosciences. Value is not an essence contained within things. It is a psychological experience that can occur only within the mind of an individual.
Value is an experience of a cognitive and emotional nature, very much like a complex sentiment. A person may “experience” or “feel” value against an object like a house, against a motorcycle or a gold coin. It’s pure Psychology! Value is not an intrinsic part of an object. Rather, it is in the mind! If you realize that a group of people is experiencing a strong feeling of value for some object – such as some seeds or pearls -, you could propose to them to use this object as a monetary unit.
How do people suddenly start experiencing these sentiments towards random things? Or better yet, how can all this be applied to a particular cryptocurrency? In Economics or Financial Sciences, experts will say that everything depends on supply and demand. This is true, to a degree. From a psychological or neuroscientific point of view, however, this explanation is not enough. Value tends to be a social phenomenon: the product of a “seduction” process. This means it resembles making someone fall in love.
There is no single deterministic way in the world to make a person fall in love – unfortunately -; there is no perfect formula. Sometimes seduction is unconscious. Each love story is very different. As a matter of a lucky fact, however, if you have a legitimately good object or product, getting people to develop feelings of value for it is not as complicated as Cupid’s work. Some crypto communities know many ways to make the public fall in love with coins or tokens. Here are some of those ways:
#1 SOCIAL CONTAGION
If you start to have contact with a group of humans towards whom you develop at least some feelings of trust, and notice within the group that many people have positive sentiments regarding their particular asset, there is a high probability that you will get infected. You would acquire (unconsciously) the sentiment of others through social contact. Your social brain is powerful!
#2 BIAS DUE TO OBJECTIVE INDICATOR
If there is an arithmetic measurement standard – cognitive component – that allows you to tangibly represent the value that people feel on a mathematical scale, such as the price of the asset in dollars, you’ll have more chances to end up falling in love with the asset, especially if the numerical value according to the scale is high. Math’s psychology is real!
#3 PERCEPTION OF UTILITY
If you can use the object or asset in real life and it solves actual problems, your brain will use episodic and emotional memory to keep record of positive experiences, and you will feel more and more attachment to the valuable object over time. This is easy to understand if you think about how some workers fall in love with their tools or how you fall in love with your favorite shoes!
#4 ACCESS TO A VALUABLE RESOURCE
If the object is an asset that gives you access to an extremely valuable common good – such as the green card for an immigrant in the USA or flight miles of an airline -, then the access to the common good can make you develop value sentiments toward the object. Some cryptos, for example, give you access to extraordinarily advanced e-platforms. The human brain loves key-like objects that grant access to treasure-like goods.
#5 EXPECTATION OF A FUTURE GAIN
If within the community that shares the experience of value for an asset – for example a cryptocurrency -, a solid belief based on facts has developed, and according this belief, everyone’s asset is expected to increase in value over time, then, this can become the most lethal way to make anybody fall in love with just one shot. When people believe that something will increase in value substantially, dopamine and adrenaline will make them over-concentrate on the asset and develop sentiments for it.
CRYPTO CUPID KNOWS MORE TRICKS
Along with the five aforementioned techniques, there are many more. Indeed, crypto projects are fully capable of finding or creating more ways to generate this psychological experience called “value” for a crypto asset, as long as they don’t forget that value is a mental phenomenon. In fact, people want to fall in love. People even like to fall in love.
However, this does not mean that people will fall in love every day in random places, because people prefer to make the right choice. That’s why in crypto it is important that investors’ hearts become hard to conquer! Love at first sight is not good in Crypto! Investors should make decisions after long periods of exposure and research. And projects should be able to offer a legitimate integral experience for investors during these long periods.