.png)
Belief and Trust.
These two words play a very important role in our everyday life. Do we really know how our financial system works? Do we really, with acute detail, know how our car works? Yes sure, if you are a chartered accountant or a mechanical engineer; but most of us are not that, most of us specialise in one or two categories. Three, if you are an accomplished, talented, individual. The point I am trying to make here is that, our knowledge and expertise is limited to only a handful of domains. The areas that we do not understand, we leave it to the experts and we trust and believe them to do their job.
But what happens when something is new on the block and still in its nascent stage? It is so new that we haven’t even discovered its full potential yet. If the concept itself is new, then how can anyone be an expert in it? How can anyone claim that they know everything the sector?
Something similar is happening in the Crypto world right now.
The most recent Terra and Luna attack brought this to the forefront. A system so robust, so trustworthy, that everyone in the financial institution and in the Crypto world raved about it; and suddenly in a matter of days it all came crashing down. A similar thing happened a few weeks ago with Vauld, and immediately all the experts and know-it-all, had nowhere to hide their face.
The one good thing that came out of it was, content consumers started questioning their Finfluencers (Finance Influencers). People, who trusted these Finfluencers and made financial decisions based on their recommendations, finally understood that when shit hits the fan, these Finfluencers would just apologise and move on.
Don’t get me wrong, Finfluencers did start off on a good note, and have played a huge part in increasing the financial literacy amongst millennials. They have also played a big role in marketing the FinTech industry in the country. But when education turns into business; marketing, PR, sales, sponsorships, and profits, become the key drivers. The educational and informative videos are now just revenue generating machines.
Cover Photo by Anna Nekrashevich: https://www.pexels.com/photo/marketing-businessman-person-hands-6802049/
I think, Influencers have always been revenue generating machines. As consumers we need to be cautious about which suggestion to follow.
ReplyDeleteEducation turns in to business. I always wondered about these finfluencers. Instead of taking time and educating me how I can make millions, why don’t you use your own methodology and make those millions?
ReplyDeleteI completely agree! Crypto is relatively new and now everyone can see that it can all just come crashing down. It's terrible that people relied on these finfluencers all because the finfluencers were looking to make a profit.
ReplyDeleteWell written
ReplyDeletethe last sentence says it all...
ReplyDeleteto make money everybody become influencers; it takes time for us to find they are sin-fluencers
(shrug)
Thanks -Christine cmlk79.blogspot.com
ReplyDeleteAgree with the first comment..... as consumers we need to be cautious about which suggestion to follow.
ReplyDeleteThis is why one shouldn't take only the advice of influencers. Mostly, they're in advertising.
ReplyDeleteIt’s so important to do our own research and not take things at face value, especially when it comes to our finances. Great examples and thanks for sharing!
ReplyDeleteIt's always been about the "buck". So many people just believe what they read or see on the internet.
ReplyDeleteFinance and economy are not absolute science. There is a lot of subjective interpretation that happens, and there are plenty of variables that make any forecast very tentative.
ReplyDeleteCrypto is very new .. and in unchartered waters ...
That is absolutely true! They persuaded us to invest in something, claiming that it would be profitable, but when we inquired, they were not in the department, and those who followed us were not experts like him or uninterested, so we lost.
ReplyDeleteI think it's a case of buyer beware at all times - usually when an influencer recommends something it's because they're being paid to do so :)
ReplyDeleteDefinitely important to check your sources and do some research on the things that you are interested in before taking risks.
ReplyDeleteThe gut feeling and discretion which should never be overlooked when taking major decisions! Liked your take on the subject
ReplyDelete