Investing using Mimetic Theory

In his musings, the French philosopher Rene Girard stated that human desires are often shaped by observing others. This fundamental aspect of human nature, he argued, holds the key to understanding our preferences and wants. Delving into this concept, I found myself questioning whether my likes and desires were truly mine or if they were influenced by external factors. Upon reflection, I concluded that much of what I enjoy or aspire to is a product of the influences around me—whether it’s my favorite childhood food or the music that I listen to.

This phenomenon isn’t confined to personal tastes; and is the reason why social media is so popular. The allure lies in peeking into others’ lives and inevitably comparing our own.

Mimetic desire, or the drive to keep up with the Joneses, becomes evident as we find ourselves coveting a new possession only after witnessing someone else with it. This principle, I realized, is not limited to children fighting over a toy but permeates into adulthood, shaping our desires and purchases based on what others have or flaunt.

Competitiveness, it seems, is ingrained in human nature, with desire at its core.

Applying Mimetic Theory to Crypto Investments

The cryptocurrency market, a realm fueled by desire for wealth, power, and success, stands as a prime example of mimetic forces in action. Emotions like greed and fear often drive investment decisions, leading to the meteoric rise of meme tokens from obscurity to billion-dollar market caps. It’s clear that this market doesn’t always follow rational or logical patterns, challenging conventional investment wisdom.

Accepting this reality was a struggle for me, as I initially envisioned the crypto market as a bastion of rationality. However, the reality is that risk-takers often outperform cautious investors in this space.

On my journey to maximize success in the next bull market, I recognize the need to integrate mimetic theory and desire into my investment strategy.

Leveraging Mimetic Theory for Investment Opportunities

So, how do I practically apply mimetic theory to identify promising crypto projects?

My approach involves scouting newly launched projects on platforms like Dextools and Dexscanner, focusing on those with utility. After thorough due diligence, I invest, anticipating a surge in interest once influencers start endorsing the project based on its roadmap and utility. Despite the seeming lack of logic, this strategy often yields significant returns, as followers blindly follow the herd.

The connection to mimetic theory becomes clear when we consider that everyone in the crypto space desires wealth and financial freedom, creating a frenzy reminiscent of World War Z, with users clamoring over each other to profit.

Addressing the #HODL Phenomenon

The #HODL phenomenon, initially perceived as a means to build community spirit, takes a darker turn when viewed through the lens of mimetic desire. It becomes a mechanism for convincing others to hold onto their investments while some capitalize on profit-taking opportunities. Acknowledging this, I recognize the importance of developing a sound profit-taking strategy to navigate this landscape successfully.

In conclusion, embracing mimetic theory and desire in the crypto market allows me to navigate its complexities and make informed investment decisions that align with human nature.

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