The marshmallow test: why cryptocurrency investors should learn about delayed gratification

I am fascinated by the cryptocurrency market dynamics and the interactions of human behaviour that is a factor in creating such a passionate yet volatile space. This got me thinking about the possible reasons why the market behaves so frantically and as such in this article I will attempt to draw some parallels with the results of an interesting psychological experiment known as the 'marshmallow test' and why cryptocurrency investors should learn about delayed gratification.

Anyone who is invested in the cryptocurrency market will attest to the fact that it can be a roller coaster ride of emotions, especially if one is intently focused on the price action from one day to the next. If anyone is looking at the market over a short period of time it can be a stomach churning event, especially for those who are new to the space or have invested far more money than they really should have in the belief that it is a get rich quick scheme.

Of course the motivation for anyone making any type of investment is to try and make some money. In fact it is a well known fact that the cryptocurrency market produces some eye watering returns, far surpassing anything that traditional finance is able to offer. But given the fact that outsized returns are made, why is it that people are never content with what they make?

It could be easy to focus on human greed here, so lets try and dig a little deeper.

The cryptocurrency market is known to be extremely cyclical in nature and each cycle has historically been quite predictable. Each bull market cycle has coincided with the year or so after each Bitcoin halving event. So in some respects one can understand the fervent desire to make as much money as possible during this time period, however it still doesn't really explain the dynamics behind some of the behaviour as surely one should be happy to simply invest and hold something like Bitcoin that has achieved an annualised return over the past 10 years or so in excess of 200%.