Crypto: A man's world?
Updated: Jun 15, 2019
I've been learning and blogging about cryptocurrencies and its ecosystem for almost two years. One of the first blogs I wrote was about women in crypto; my thoughts remain the same when it comes to the belief that there is a noticeable gap between men and women who participate in the crypto community. Now almost two years later, with more research and having assisted to different crypto events I believe it’s crucial for women to be involved in this space.
Crypto, in its early stages, is having a significant impact on the current financial system and blockchain technology is revolutionizing different industries. It's important to stay tuned with the many advances that are made because there may be many who don't know about crypto, but it does not mean there isn't much going on; matter of fact A LOT is going on.
I’ve had this conversation with people who have emphasized that there are fewer women in crypto because women take less risk than men when it comes to trading or investing. You may agree with this or not, but when I mean women in crypto I am not only referring to women who invest in digital money; but also participating in content creation, ICO's or being informed about these advances. According to Coin Dance, 90.09% of the bitcoin community engagement is male participation.
Risks in the world of finance?
John Coates is a neuroscientist and applied physiologist working on the biology of risk-taking and not just any risk trading and financial risks.
“As a trader on Wall Street during the dotcom bubble of the late 1990s, John Coates watched in fascination the way his male colleagues reacted to the rising share prices. Men who were normally prudent became euphoric and reckless, taking on too much risk, while women traders were largely unaffected.”
“He suspected that testosterone was building up in traders’ bodies, making them feel infallible and pushing up market values to unsustainable heights. He felt sure that body chemistry was at the root of market bubbles.”
If you speak to a trader about risks, they will likely tell you that risks have to be taken. I guess that's why they say, "Do not invest more than you can't afford to lose." Although risk might be necessary to make quick market decisions, they may also be a dangerous thing.
“They found that traders performed better on days when they registered higher morning levels of testosterone. By increasing confidence and risk appetite, testosterone made them more likely to win, and each time they did, their levels would rise even higher. However, this ‘winner effect’ had a dangerous conclusion, as eventually traders became so overconfident that they began to take irrational risks. Similar behavior can be observed in animals – they pick fights, neglect their offspring, and go out in the open too often.”
“By contrast, when markets crashed or became volatile, traders registered rising levels of the stress hormone cortisol, creating feelings of paranoia and irrational pessimism and making them risk averse – the perfect ingredients for a bear market.”
Testosterone or not, I do believe there are many moments where quick decisions have to be made. Risky or not, I believe that balance is always a positive thing. For ages, men have dominated the financial world; and now crypto still in its early stages brings a new technology that is changing the financial world. Why not do things a different way?
With this I am not saying there are no women in crypto, sure there are, I've met some, and there are others who I follow on social media, but the participation of men is undoubtedly the majority and therefore more notorious within the crypto community. Hopefully, one day, we will see more women participating and knowing about cryptocurrencies and blockchain; maybe next time when you go to a crypto event, the number of exhibitors and participants will be an equal number between women and men and not just models promoting a startup.
I hope you enjoyed it!