Cryptocurrency and herding behaviour
By: Udette Kirsch - behavioural economist & strategic marketing specialist
Cryptocurrencies refuse to play by the rules. People rely on experts for all sorts of advice, but when it comes to cryptocurrencies, they seek advice from peers and the internet. So, what causes this behaviour, and what are the implications? Hint: it’s rooted in behavioural psychology.
Recent studies suggest that crypto-currency investors rely less on expert advice and increasingly follow peer investor communities for guidance.
The daily value of South African crypto trading recently exceeded $141 million for the first time, indicating that many South Africans consider the risks of this complex, unregulated market to be acceptable for the returns which it may deliver.
Digital advocates have hailed cryptocurr...