The Negative Majority Effect - Crypto Is Not Exempt
The Human Benchmark
Due to societal constructs and peer pressure, people generally tend to view themselves in the light of, and in comparison to others. This is often a subconscious level of behavior, and in many ways is responsible for mediocrity. I refer to it as the “negative majority effect”. Ultimately, it works to create and maintain a perceptual and behavioral norm.
The only problem is that it works to reduce efficiency, productivity, and ultimately, results. This effect is very much part of why human behavior resorts to a form of acceptance, rather than an independent approach. It explains why the majority of society is so obese. The negative majority effect creates a standard of acceptability, rather than that of excellence.
Ask yourself why the human benchmark is not on the other side of the spectrum. Why is every single aspect of human behavior negative, as a whole, as opposed to positive? Success, in any area, resides with the minority. It’s a minority of society who are fit and in excellent shape. It’s the minority of society who work 80-hour work weeks, especially when they don’t have to. It’s a minority of society who have disciplined spending habits, and as a result, have healthy savings.
I could go on and on. In every single aspect, or expression of life, excellence resides with the minority. The negative majority effect is at work in every area of life, including Crypto. You will sometimes hear Crypto OGs like myself and others joking about how we are often referred to as “lucky” by newcomers. Once again the negative majority effect plays a significant role in forming this opinion and perception.
Why do I say that? Well, that is exactly why they believe it to be luck. They are simply projecting the behavioral norm onto others. Just because they, and the majority of society are submissive to the negative majority effect, they presume and project likewise onto others. However, that’s not the case. Those who have enjoyed any level of success in Crypto have put in thousands of hours of disciplined dedication.
The Narrow Way
Yes, some coins produce enormous gains in a bull market, making it all appear very easy, and even, lucky. However, it’s a disciplined, knowledgeable, and experienced eye that can identify these projects in advance. This however is never taken into account, as the journey required to reach such a level doesn’t fit into “normal behavior”, and so doesn’t exist in their minds.
As a result, what other conclusion are they able to arrive at? For a mind under the influence of the negative majority effect, it can only be luck. Gaining success in financial markets comes down to execution, and execution is governed by a strong, disciplined, and knowledgeable mental approach. It’s not the sector (Crypto) that provides you with success, it’s how you approach it.
I know of many investors who spent months in the previous bull market and still walked away in tatters. The gains are there to be had, but it’s a lot like fishing. Two fishermen fish in the same spot… one walks away with nothing and the other bucket loads. No, it’s not luck… it comes down to experience, skill, and execution. It’s also important to remember that success is subjective.
If Crypto has been able to positively enhance your life in some way, shape, or form, you have managed to achieve a level of success. Crypto enthusiasts need to find ways to consistently achieve measurable results. By doing this repetitively, ground is being covered, and the negative majority effect is conquered.
Final Thoughts
Those who simply choose to wait around for the next bull market are most likely in the camp of the negative majority. There’s little action from their side. They are simply waiting for the market to do everything for them. However, the best approach is to provide as much as possible for the bull market to work with. The most favorable results are usually not isolated.
They usually incorporate a strong bull market dynamic, which is further enhanced by an extraordinary approach. If you haven’t done so already, now’s the time to break away from the herd and begin securing tomorrow’s results. All the best, catch you next time!
Disclaimer
First of all, I am not a financial advisor. All information provided on this website is strictly my own opinion and not financial advice. I do make use of affiliate links. Purchasing or interacting with any third-party company could result in me receiving a commission. In some instances, utilizing an affiliate link can also result in a bonus or discount.
This article was first published on Sapphire Crypto.