Many people make nonsensical decisions with their money. Because of that, here are the top 5 foolish mistakes people make with Bitcoin. Stay informed and avoid these pitfalls.
Years ago, behavioral economics scientists like Richard Thaler, who won a Nobel Prize, identified nonsensical behaviors we sometimes engage in without even realizing it.This often occurs because most people can’t completely detach their emotions from financial decisions. However, the good news is, that once you’re aware of this, it’s much easier to avoid these mistakes.Although Thaler is associated with Warren Buffett, a well-known Bitcoin skeptic, human behavior remains consistent across different forms of money. Thaler’s insights into human financial behavior can help you avoid transferring irrational habits from your fiat money dealings to Bitcoin.In this article, we’ll discuss the 5 biggest foolish mistakes people make with Bitcoin.5 mistakes people make with Bitcoin:
- Endowment Effect
- Sunk Costs
- Assigning Utility to Transactions
- Mental Accounting
- Overconfidence