Bitcoin Price Bias Investing – Bitcoin Magazine: Bitcoin News, Articles, Charts, and Guides

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Source: Author modification of 43/1995 from goodfreephotos.com

Source: Author modification of 43/1995 from goodfreephotos.com

You try to have the Bitcoin conversation. All you hear back is fear, uncertainty or doubt (FUD). You try to explain Bitcoin and their eyes glaze over. Often no-coiners or alt-coiners just don’t want to hear about Bitcoin.

Cognitive Biases At Play

Let’s try to understand by looking into the cognitive biases that enable the FUD and noise . Once these are understood, we can try de-biasing instead.

We define cognitive bias as, “a systematic pattern of deviation from norm or rationality in judgment. Individuals create their own “subjective reality” from their perception of the input. An individual’s construction of reality, not the objective input, may dictate their behavior in the worl​d.”

In short, our judgement is often not accurate in predictable ways.

To understand the systematic errors in people’s Bitcoin judgements, let’s start by looking at four biases around bitcoin’s price.

Availability And Recency Bias

Source: Drawing by Heidi Porter

Source: Drawing by Heidi Porter



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