Part 5/17:
The Small Scale and Volatility of Cryptocurrency Economics
Unlike traditional money backed by overarching economies, cryptocurrencies are relatively small, fragile markets susceptible to sensational headlines—such as "Bitcoin has died"—that send prices tumbling. Many new participants jump in motivated by FOMO, hoping to profit from rising prices and often making the mistake of trading impulsively, like buying high and selling low. The speaker emphasizes the importance of patience, caution, and understanding rather than speculation.