A Psychoanalytic View of Cryptocurrency and Investing, Using the Example of Bitcoin

The financial world is changing rapidly, following the technological development and the emergence of new technologies. Cryptocurrency and digital currency is the next step in the history of money. It is currently the most interesting and relevant topic in financial world today. This thesis will examine cryptocurrency in the context of psychoanalytic theory from the illusion of omnipotence and magical thinking to the fantasy of separation and the Oedipus complex. There is a new twist in the relationship to money with the advent of digital currency and cryptocurrency. Cryptocurrency is more than a financial instrument; it is a cultural phenomenon reflecting social moods and trends. This paper examines individual characteristics of cryptocurrency perception, such as FOMO (missed opportunity syndrome), FUD (strategy of influencing perception by spreading negative and questionable information (Fear, Uncertainty, Doubt), and herd behavior (imitation of others' judgments in decision-making). Particular attention is paid to analyzing the unconscious motivations and fears underlying investor decisions, this can provide valuable insight for effective coaching and counseling, hence the relevance of this paper. The hypotheses of the study are that an individual's interaction with cryptocurrency is characterized by a dynamic similar to object relations, where investors interact not only with the real value and potential of cryptocurrency but also with their idealized “imaginary” object, and also that investor's irrational behavior towards cryptocurrency depends on their level of mental maturity: non-acceptance of internal constraints, not withstanding frustration and not having a strong enough Ego provokes investment behavior anomalies such as FoMo, FUD, herd behavior, or ignoring risks. A study was conducted to analyze the anxieties and projections related to cryptocurrency and the psychoanalytic phenomena explaining them. The research methods included analytical analysis of psychoanalytic for the empirical study applied quantitative method of survey and qualitative method of semi-structured interview with the use of projective drawing technique. The dissertation consists of an introduction, two chapters, a conclusion and a list of references. The volume of the main text is 166 pages. The bibliographic list consists of 45 titles, 27 of which are in foreign languages.