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Faith is fluctuating, value is an illusion, vision is like a play — the mindset and reality of cryptocurrency traders Have you ever wondered why trading cryptocurrencies evokes such love and hate in so many people? Some treat it as a faith, firmly believing that digital currency can change the world; others see it as a series of price fluctuations, as illusory as a mirage; and some are intoxicated by various beautiful future scenarios, only to be harshly confronted by reality. In fact, the mindset of cryptocurrency traders is, as philosophers say: faith is fluctuating, value is the illusion of consensus, and vision is a rehearsal of speculation. This may sound abstract, so let's discuss it slowly. Faith is fluctuating: the tug-of-war between ideals and reality When Bitcoin first appeared, many saw it as a revolution, hoping it would make finance freer and fairer. As philosopher Nietzsche said, "Faith gives people strength," and they believed this technology could disrupt the old order. Xiao Wang is a tech enthusiast who was initially full of enthusiasm for blockchain technology, thinking it was the future. However, with the market's ups and downs, his faith began to waver. You may have had similar experiences: when you believe in something, and reality hits you hard, the tension in your heart tightens. Xiao Chen, a freelancer, started by following friends in buying and selling, getting excited when he made money and panicking when he lost. Psychology tells us this is a classic example of the "herd effect" — we tend to follow others, fearing we will be left behind. Philosopher Heidegger said that humans are always "thrown into" this world, and uncertainty and anxiety are the essence of humanity. The faith of cryptocurrency traders actually sways in this uncertainty; they both desire to control the future and fear being defeated by reality. Value is the illusion of consensus: true value or collective dream? Why is the digital currency you buy valuable? Not because it has physical backing, but because everyone believes it has value. This "everyone believes" is actually a consensus. As some people say, "The consensus of fools is still a consensus." This reminds me of the French philosopher Badiou's concept of "event," where value is a truth collectively acknowledged at a certain moment. But this consensus is fragile, like a castle on the beach, easily toppled by a gust of wind. During the ICO boom in 2017, many projects inflated like bubbles, and everyone thought they were the future gold mines. In the end, the bubble burst, and investors lost everything. The value in the cryptocurrency market is, in fact, an illusion we weave ourselves. Psychological research shows that investors often exhibit overconfidence, neglecting risks and falling into confirmation bias, only listening to information they like. Coupled with the amplification of social media, the herd effect makes the market feel more like a carnival, where everyone cheers while worrying about tomorrow's crash. Vision is a rehearsal of speculation: a beautiful dream of the future or a trap of reality? Many crypto projects love to paint grand visions, telling you how wonderful the future will be: decentralized finance, the metaverse, digital identity... These visions are like a grand drama, attracting funds and attention. However, visions are often "rehearsals," and the real story hasn't even begun but is already packaged in a dazzling manner. The technology is still immature, users are not convinced, and regulations come to disrupt; the gap between reality and vision is like the difference between the shadows in Plato's cave and the real world. This reminds me of philosopher Derrida's concept of "deconstruction," where vision is actually a text, and speculation is its deconstruction and recreation. Investors in this drama are both the audience and the actors. They are attracted by beautiful visions, investing enthusiasm and funds, but often overlook the risks and uncertainties behind them. Imagine walking into a theater, seeing the stage filled with dazzling lights and gorgeous sets, with actors passionately portraying future stories. But when the curtain falls, the reality in the audience is an empty hall and an unfinished stage. Many "projects" and "visions" in the cryptocurrency market are just such dramatic rehearsals. This inevitably brings to mind the French philosopher Jean Baudrillard's theory of "simulacra": the visions we see are actually replicas, illusions that have been packaged and amplified, rather than the real future. Cryptocurrency traders become lost in this illusion, hoping for a never-ending good show. The psychological mechanism of cryptocurrency traders: greed, fear, and cognitive bias The psychology of cryptocurrency traders is, in fact, a true display of human nature. Greed makes people want more, fear makes them afraid of losing, and the two intertwine, tearing at each person's heart like a tug-of-war. In psychology, there is a classic phenomenon called "loss aversion," which means that the pain of losing is far greater than the pleasure of gaining. For example, the pain of losing 100 yuan far exceeds the satisfaction of gaining 100 yuan. This explains why cryptocurrency traders often panic and cut losses in a downturn, while in an upturn, they chase prices wildly. There is also the "overconfidence" bias, where many overestimate their judgment, believing they can catch the peaks and troughs of the market. The result is often frequent trading, increasing the risk of losses. Philosopher Spinoza once said, "Human emotions are woven from imagination and judgment." The emotional fluctuations of cryptocurrency traders are the result of their imagination and judgment about market information colliding repeatedly in their minds. Challenges in reality: regulation, risks, and information asymmetry The cryptocurrency market is not a completely free paradise. Governments around the world are gradually strengthening regulation, both to protect investors and to prevent financial risks. For example, China banned ICOs and cryptocurrency trading starting in 2017, which curbed speculative behavior but also pushed many investments into underground markets. The United States is trying to find a balance between encouraging innovation and regulating risks, continuously introducing regulations. Technological risks cannot be ignored either. Smart contract vulnerabilities, exchange hacks, and project exit scams are rampant. These risks are like hidden reefs beneath the water, which can lead investors to financial ruin if they are not careful. Information asymmetry is another challenge. Ordinary investors find it difficult to obtain comprehensive and objective information, making them susceptible to manipulation and misinformation. The amplification effect of social media allows false information to spread faster and wider, increasing market irrationality. Philosophical insights: how should we cope with uncertainty? Faced with the uncertainties of the cryptocurrency market, we can't help but ask: how should we confront this fluctuating faith, illusory value, and rehearsed vision? Philosopher Heidegger tells us that humans always exist in a state of "being-toward-death," and our anxiety and unease in the face of the unknown future are inevitable. The mindset of cryptocurrency traders is a reflection of this existential anxiety. Stoic philosophers teach us to accept the uncontrollable and focus on what we can control. For cryptocurrency traders, this means investing rationally, managing risks, and controlling emotions, rather than being led by market fluctuations. As Laozi said, "Knowing when to stop leads to stability; stability leads to tranquility; tranquility leads to peace; peace leads to contemplation; contemplation leads to attainment." This saying tells us that in the face of the complex external world, inner stability is the first step. For cryptocurrency traders, it is essential to know their bottom line and understand the risks they can bear to remain calm amidst the market's turmoil. This is not only the wisdom of investing but also the philosophy of life. The unpredictable nature of the cryptocurrency market reflects the impermanence of life. In this game, we are not only chasing wealth but also grappling with our desires, fears, and hopes. Philosopher Kant once said that humans are rational beings, but at the same time, they are also emotional beings. The inner world of cryptocurrency traders is a battlefield where reason and emotion collide. Reason allows us to analyze data and set strategies, while emotion drives greed and fear. Only by learning to balance the two can we avoid being swayed by emotions and make wiser choices. Conclusion: Trading cryptocurrencies is a spiritual practice Trading cryptocurrencies is not just about buying and selling digital currencies; it is a mirror reflecting our faith, desires, and fears. Faith is fluctuating, value is the illusion of consensus, and vision is a rehearsal of speculation — these three elements constitute the inner world of cryptocurrency traders and determine the essence of the market. As philosopher Nietzsche said, "What does not kill me makes me stronger." The experience of trading cryptocurrencies, whether successful or not, is a form of training. It teaches us how to face uncertainty, manage emotions, and find our place between illusion and reality. If you are willing to see trading cryptocurrencies as a spiritual practice, then every rise and fall will become a stepping stone for growth. Maintaining rationality, cultivating mindset, and recognizing reality will allow you to go further and steadier on this path.