The chief executive of a cryptocurrency asset management firm said the financial hardships experienced by most Americans have led them to seek greater risk in altcoins for a chance to profit.
Ikigai CIO Travis Kling said on social media platform
According to Kling, the American dream is no longer as easy to achieve as it once was. pushing Younger Americans are investing in riskier cryptocurrency assets such as memecoins.
“The idea that the cost of living is suffocating most Americans; More and more people are being denied opportunities for upward mobility. Median home price divided by median income is completely unaffordable.
All of that is true, so you really should swing for the fences.
Why not invest $500 in a memecoin that could win you 50x, knowing you could lose most or all? Anyway, $500 doesn’t seem like enough to make a difference…
The prevailing mentality in America is financial nihilism. This is the zeitgeist of young Americans. It would be naive to think otherwise. And that’s a big driver of sh*tcoining.”
cling Point out Two dominant trends are driving the thinking of traders seeking higher yields in altcoins. The first is relative valuation, or the idea that it is better to accumulate one cryptocurrency asset over another simply because it is cheaper.
“ETH is a buy because it is cheaper than BTC. Buy SOL because it is cheaper than ETH. I buy APT and INJ because they are cheaper than SOL. We buy SUI, SEI, and TIA because they are cheaper than APT and INJ. Absolute evaluation levels are ignored. The default is ignored. “It’s cheaper than the other one, so buy that one.”
second trend include airdrop. According to Kling, traders are participating in cryptocurrency networks believing they will be rewarded with free tokens.
“Airdrops were huge in 2023, which was one of the biggest stories in Alts this year. ARB, JTO, Blur, friend.technology. In 2023, seasoned on-chain market participants received stimulus checks from cryptocurrencies that would put the US government to shame. The smallest airdrop sent by JTO was worth $8,500…
Who cares how much it’s worth when you get it for free? We didn’t have that setup before.”
The Ikigai CIO end His analysis of financial nihilism in America by saying that people are willing to enter the cryptocurrency market even if they don’t trust the asset class.
“One last point about financial nihilism and cryptocurrencies. Americans do not trust cryptocurrencies. Three out of four people familiar with cryptocurrency are not confident in the safety of cryptocurrency transactions. 40% of cryptocurrency investors are not confident in cryptocurrency. However, if you polled those same investors and asked them about higher prices, I think it’s likely that the majority would expect higher prices. Don’t believe it. Prices are rising. It lacks pretense. Let’s go sh*tcoining.
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