03 Dec Tech News : Hamster Crypto-Croaks
Max, a.k.a. “Mr Goxx”, the hamster that found Internet fame through outperforming many human cryptocurrency-traders, has died.
Experiment With ‘Wheel’ Results
The hamster’s life as a crypto trader was down to him being used as part of an experiment by an anonymous German lecturer and prototyping specialist duo who set out to demonstrate the randomness of the crypto markets.
Max’s cage (“office”) contained an ‘intention wheel’ used to select different crypto-currencies, and two tunnels, one for ‘buying’ and one for ‘selling’. A run on the wheel, followed by which tunnel he chose to walk through, decided which cryptocurrency would be bought/sold. His ‘office floor’ activities were shown on ‘Twitch’ (a video live streaming service).
Live Fast, Die Young
The hamster’s financial predictions only began in June this year but in his short time as an unsuspecting crypto-trader, he occasionally came out slightly ahead of Bitcoin, gained followers around the world on Twitter, and even attracted the attention of multi-billionaire Elon Musk.
Finished On A High
Following his last trading session on 20 November, Mr. Goxx was reported to have been up 19.72 per cent, apparently outperforming Warren Buffet’s company, Berkshire Hathaway.
The duo behind the experiment, who always stressed that Mr Goxx’s predictions should not be taken as any kind of real financial advice, were making the point that for most people, the world of cryptocurrencies is baffling, and lacks transparency. For example, the pair are quoted as saying that “It seems like most people from our generation see no other chance than throwing a lot of their savings on the crypto market, without having a clue what’s going on there”.
One-Third of Investors Know Little To Nothing About Crypto
The point of the Mr Goxx experiment is also illustrated by a report from Cardify (March 2021) which showed that only 16.9 per cent of investors who have bought cryptocurrency “fully understand” its value and potential. The survey also showed that 33.5 per cent of buyers have either little or zero knowledge about cryptocurrencies and would describe their understanding of the subject as “emerging.”
What Does This Mean For Your Business?
Many businesses are likely to share the view that despite much of the hype and news about the benefits and the apparent volatility of cryptocurrencies to date, there is still a lack of clear information and guidance about how crypto-currency investment can be undertaken successfully, and how it can be used to benefit businesses. Whereas blockchain (the technology behind cryptocurrencies like bitcoin) is already being used successfully in multiple business sectors, if the random choices of a hamster can outperform the deliberate moves of renowned investors business, trust in crypto-trading is likely to remain very low, scepticism will remain high, and all things crypto-currency are likely to remain a mystery. For those businesses already involved or thinking of getting involved in crypto-currency investment, some of the suggested guidance includes setting limits on investment amounts and which currencies, having a diverse portfolio, taking a long-term view, as well as using automated purchases, and possibly using trading bots. Without the knowledge and understanding of crypto-currencies, however, many may be tempted to seek the help of professionals in crypto-investment.