If you’ve been in the crypto world for more than a minute, chances are you’ve heard of shitcoiner stockholm syndrome. But what is it? And why do people fall head over heels for shitcoins? The Shitcoiner Stockholm Syndrome is a term used to describe the psychological phenomenon whereby an investor continues to hold a losing investment in the hope that it will eventually rebound. The name is derived from the infamous “Stockholm Syndrome,” in which hostages develop positive feelings towards their captors. In the case of shitcoiners, the captors are the developers of worthless cryptocurrencies who have duped them into investing. Like hostages, shitcoiners often rationalize their situation by telling themselves that they made the investment voluntarily and that they are free to cash out at any time. However, in reality, they are trapped by their own irrational optimism and fear of missing out. As the value of their investment plummets, they convince themselves that it is still worth holding onto in the hope of making a big profit someday. This misguided thinking can lead to financial ruin, but it is often hard for shitcoiners to break free from their delusion.
Here’s a quick rundown
Stockholm syndrome is a psychological phenomenon whereby hostages develop positive feelings towards their captors. This can happen for many reasons, including the need to survive, the desire to be seen as cooperative, or simply because humans are social creatures who crave connection. In the world of crypto, shitcoiner stockholm syndrome refers to the phenomenon whereby investors develop positive feelings towards shitcoins (i.e. coins with no real use case or value proposition). This can happen for many reasons, including sunk cost fallacy, confirmation bias, survivorship bias, and complexity theatre.
Sunk cost fallacy is the tendency to continue investing in a coin simply because you’ve already invested so much money. In other words, you’re throwing good money after bad.
Confirmation bias is the tendency to seek out information that confirms your existing beliefs. So, if you believe that a particular coin will make you rich, you’re more likely to notice news stories about that coin’s recent price pumps and ignore stories about its price crashes.
Survivorship bias is the tendency to focus on the coins that have made it big and ignore the hundreds (if not thousands) of failed coins. This is similar to confirmation bias in that it leads investors to believe that a particular coin is more likely to succeed than it actually is.
Complexity theatre is the tendency of some projects to add unnecessary complexity to appear more impressive and thus attract more investment. A good example of this is EOS’s much-hyped but ultimately flawed consensus algorithm.
Can you make money with shitcoins? Yes and no. If you buy a shitcoin at $0.01 and it goes up to $1, then yes, you’ve made money. So while it’s possible to make money with shitcoins, you’re much better off investing in proven cryptocurrencies like Bitcoin.
Symptoms of shitcoiner stockholm syndrome
Shitcoiner stockholm syndrome is a condition that can afflict investors who have sunk money into a failing cryptocurrency project. The syndrome’s symptoms include an irrational attachment to the project, despite all evidence to the contrary, and a steadfast belief that it will eventually succeed. Victims of the syndrome often go to great lengths to defend the project, and they may even attack other investors who express doubts about its viability. In extreme cases, shitcoiners have been known to threaten violence against those who disagree with them. If you suspect that you or someone you know may be suffering from shitcoiner stockholm syndrome, the best course of action is to get out while you still can. Swallow your pride and admit that you made a mistake, cut your losses and move on. With any luck, you’ll be able to forget that this ever happened and move on with your life.
Shitcoiner stockholm syndrome is a real phenomenon whereby investors develop positive feelings towards shitcoins. We learned this can happen for a number of reasons, including sunk cost fallacy, confirmation bias, survivorship bias, and complexity theatre. While it’s possible to make money with shitcoins, you’re much better off investing in proven cryptocurrencies like Bitcoin.