Ajay Khandelwal Psychoanalytic Psychotherapy & Counselling near Southwark, South London & Forest Hill, South East London

Sell !

I am not a financial adviser, but as a psychoanalytical psychotherapist, I will not be accepting payment in bitcoin or any other cryptocurrency. Why? Because I'm not convinced it will be worth anything in the coming years.

There are much cleverer people than me, companies and countries who accept payments in cryptocurrency, so I'm clearly behind the times?

A more psychoanalytical way of thinking about it is as follows. When faced with ambiguity and uncertainty our psychic apparatus becomes very active. Such ambiguity is a key feature of economic markets. However, this can be intolerable for participants and observers, who try and create a more certain picture in their minds.

They seek out what David Tuckett has called "phastastic objects." Such objects have special qualities ascribed to them. They are different to every day objects. For instance, well known US fund manager Cathy Wood might argue her fund is a game changer because it invests in "disruptive innovation." That explains it's S and P beating out performance... All the companies contained within her portfolio are doing things that has never been done before, and so normal economic evaluations do not apply.

They are "phantastic objects", which allow us to siphon off all our worries, cares, boring sums, due diligence and anxieties. The mysterious working of "phantastic objects" allows our imaginations to operate with great intensity.

This anxiety-free state allows to invest both psychologically and emotionally into such schemes. So what if the company doesn't make any money? So what if the company loses money? So what if the experts can't find any value in the company assets. Stop being such a stuck in the mud. Cathy Wood is a cheer leader for the "phanstastic object." Another thing about such an object is that it creates a terrible fear of being left out. It has a magical lure, and their is a wish to have some sort of stake in it, or some form of involvement with it. A collective delusion takes hold, and those on the side line are eventually contaminated and are required to participate through organisational or peer pressure, index linked funds have to pile in, momentum based investors join in, and finally, retail investors, reading reddit forums invest their savings and retirement funds.

During lockdown the range and scope of such objects was vast. SPACS (where they take the money up front and then decide how to spend it!); EVs (just put the word electric in front of vehicle) Crypto (just pust the word blockchain somewhere); space travel; anything that was going bust and was hated by the Hedge fund suits in Wall street (AMG, GME). All of these became "Phantastic objects", where the reality principle was surrendered and you can have what you want when you want it.

Of course, COVID is waning, and the Federal reserve is hiking interest rates, things are getting a bit pricey and hard to get hold off, and the reality principle is asserting itself. All that anxiety that was split off, is returning. Cathy Wood is underperforming. Oh dear. The "Diamond Hands" are melting. They promised they would never sell. So who has been doing all the selling then? The recriminations and law suits are limbering up. Hey, we've been duped. Hang on wasn't crypto a hedge against inflation? Wasn't it guaranteed to only go up? Wasn't it a fantastic innovation? Wasn't there a country in South America where you can pay for your hair cut with crypto? Wasn't it going to be different this time. I'm usually wrong. But I'm still not taking payment in crypto for now.

For more in depth reading on the psychoanalytical lense and markets read

https://onlinelibrary.wiley.com/doi/full/10.1111/j.1745-8315.2008.00040.x











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