2.4.1
The South Sea Bubble
In 18th-century Britain, the South Sea Company became one of the most famous speculative bubbles in history.
- Its shares soared
- People rushed to invest
And soon, the excitement wasn't limited to wealthy investors, guess what?
Everyone wanted a piece of it!
What made it especially interesting?
The company had an aura of power, connections and credibility.
People saw important names getting involved
And that made the opportunity feel safer.
The thinking became:
«“Surely this many important people can't be wrong”»
- Then reality caught up
- The price collapsed
- Fortunes disappeared
And people discovered something that still matters today:
- A crowd can make an idea feel trustworthy without making it true
- Markets have changed dramatically since 1720
- Human psychology hasn't changed nearly as much
Sometimes the question isn't:
- “Who else believes this?”
It's:
- “What would make this true even if nobody believed it?”
~ Think before you act
#BinanceSquare #ThinkBeforeYouAct #History #BehavioralFinance
The South Sea Bubble
In 18th-century Britain, the South Sea Company became one of the most famous speculative bubbles in history.
- Its shares soared
- People rushed to invest
And soon, the excitement wasn't limited to wealthy investors, guess what?
Everyone wanted a piece of it!
What made it especially interesting?
The company had an aura of power, connections and credibility.
People saw important names getting involved
And that made the opportunity feel safer.
The thinking became:
«“Surely this many important people can't be wrong”»
- Then reality caught up
- The price collapsed
- Fortunes disappeared
And people discovered something that still matters today:
- A crowd can make an idea feel trustworthy without making it true
- Markets have changed dramatically since 1720
- Human psychology hasn't changed nearly as much
Sometimes the question isn't:
- “Who else believes this?”
It's:
- “What would make this true even if nobody believed it?”
~ Think before you act
#BinanceSquare #ThinkBeforeYouAct #History #BehavioralFinance
