What is Optimism Bias
Why it's occurs ?
Some factor could lead us to optimism bias :
1.The experience of keeping some level of control over the things around us, including what will happen in the future for us. That feeling of expecting and reach it makes us confident that everything is worked as we want or think;
2.Natural tendency to accept and belief based on positives information.
3.Optimism is better for our mental and physical health, because it would reduce the anxiety and reduce stress.
Example of Optimism Bias in Crypto
I personally have this experience when bought huge ammount of venari wavesmith on it's positive trend. From 2$ until 5$, I got many of them to rent it again for nice APR, only to see the reality that it's value droped into less than 0.03$ on a few month later.
The Fear of Missing Out (FOMO) is widely known on investing world, and that is another example of Optimism Bias
On crypto world, where the value is depend on the market and could having a significant up and low, it's important to keep in mind the risk of it and investing based on it. Cold money is recommended because we may lose it's value at anytime despite the chance to raise huge ammount of the value as well.
How to Avoid Optimism Bias
1.Educate Ourself. The more we read, the more we know, the more we learn about things we are going to do. This includes the risk the we are going to face.
2.Be critic. Always try to look information and point of view. Makes analysis with the tought of your project is failed. This could lead us to find a reason of why it's fail and prepare for it.
3.Seek for opinion. When we are on optimism bias, we might already know the risk but failed to recognize it due to the over confident. Outsider, could give a honest opinion and help us to remind the risk we are not knowing, or underestimate.
Final Words
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