As I have looked into crypto trading as a way to better myself and learn more about the crypto world I am struck by a thought. Why is trading crypto just like playing a game of Werewolf or Mafia?
How is a social deduction game like trading crypto?
Surely I must be joking, right? Well, no. I am not. If you ever have played the game Werewolf, Mafia, or one of the countless other variations of the game. you know that after the roles are assigned and the first round starts. There is no information available to the players. One of the more common ways to get things started is to randomly cause a person for being the Werewolf or the Mafia. And then see how they and other people will respond to this accusation.
And I find that cryptocurrencies, and the evaluation of them in particular, are very similar to this. And what I mean by that is that an extremely large portion of the value of a cryptocurrency is determined by speculation alone.
In that respect, the value of a cryptocurrency and who the villagers will vote to kill in a game of Werewolf or Mafia are very similar. Both are based on the majority rules principle. And that is when the majority have made up their mind, then that is where we end up, and in the case of Warewolf or Mafia. This is where the villager, or hopefully badie in disguise, is killed.
In trading, this is represented by the candle closing. This is the majority consensus for this day, hour, or week. However long or short your chosen time allotment is. And Just like in the game, if many people were unsure and not certain that the decision made yesterday was the correct one. Then that leaves a lot of room for the price to increase or drop.
This is why cryptocurrencies can be very volatile. The more people who think the current price is wrong. The more volatile the price tends to be. Unless the majority comes to a consensus again. And the price stabilizes. And just as with the price of cryptocurrencies, when the majority is made up of most people the price will basically stay the same. In Werewolf or Mafia, a guilty party is hung by the mob very fast.
An ongoing game of Werewolf
And in Werewolf or Mafia, the volatility is the discussions that take place. Where people try to convince each other that the accused person is either guilty or innocent. And just like when a candle can close, the group can be forced to vote by the gamemaster. This usually is done after a fixed amount of time that is predetermined.
Do you agree with me, or do you think I am barking up the wrong tree completely? Have you found anything in crypto that you think is very similar to something else? Please share your thought on all of this in the comment section down below.
You will also find a link to one of the most complete Werewolf games by the picture link. That company has also put out a much shorter version of the game in case you are strapped for time as well. Called One Night Ultimate Werewolf.
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Picture provided by: https://boardgamegeek.com/boardgame/38159/ultimate-werewolf-ultimate-edition
