Bitcoin is the Bellbottoms of The Investing World

By Joseph Conroy via

Every now and then something comes along and takes America by storm.  We might think this is a new phenomenon brought forth in the digital age, but the apparent truth is that a craze for a trend is nothing new.

Long before viral cat videos and shared posts on social media, there were many trends.  Trends might be too generous a word, they might be better described as fads.  These fads may have taken a little longer to develop and catch on, but when they did, everyone took notice.

The important social aspect of a fad is that in the beginning, it seems kind of silly.  Then, as it grows in popularity it starts to turn into the new normal.  Next you start to see neighbors, family and colleagues getting in on whatever it may be.

Finally, this fad doesn’t quite seem like something silly or passing anymore.  It starts to make sense by social osmosis.  Thoughts start to creep in like “am I the only one who doesn’t own bell bottom jeans or a cabbage patch kid?”

The final phase of a fad is capitulation.  If you hear about something for long enough, from enough people, the initial doubt starts to fade away.

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