Bandwagon is a psychological effect that almost everyone suffers. But not everyone understands What is bandwagon. So in today's article, Virtual money blog will share to you all the knowledge related to Bandwagon. Along track posts offline!
What is bandwagon
Bandwagon is an English word, originally meaning just a train / vehicle used to transport parades, circus or tour entertainment. But now, Bandwagon is used in many different meanings, particularly in terms of economic categories, which is a concept that describes the situation when the price of an item falls, the demand of some people. Buying will increase, then others imitate their response and increase their needs. If this effect exists, the market demand curve is not just the sum of individual demand curves, but translates further, demand larger than expected when people are swept away by someone else's purchases.
The train effect is often seen in growing markets and bubble times like the crypto market in 2017. At that time the total volume of transactions in the cryptocurrency market was an average of 3 billion. USD / day, nearly equal, and showed signs of being able to surpass the stock with the largest volume of transactions in the world at that time was Apple (4 billion USD / day).
In addition, the Bandwagon train effect has another meaning in terms of psychology, which is a psychological phenomenon in which people are going to do something mainly because others are doing it. , in spite of their actions against their beliefs. With this in mind, the train effect is of broad significance and can be applied in many fields but is often seen in politics and consumer behavior. And in terms of psychology, Bandwagon is also known as the "5 monkeys and 1 bunch of bananas" effect.
Why Bandwagon is called the effect 5 monkeys and a bunch of bananas
To understand more about the psychological aspect of individuals, some scientists in the 19th century did an experiment of locking five monkeys into a cage, in a cage there was a ladder and on top of it was a slump. banana. Initially, every time a monkey climbed the ladder, the scientists sprayed the others with cold water. And after a while, any monkey who climbs the ladder will be beaten by the rest.
Again after a while, no more monkeys escalated despite the temptation of bananas. At that time, scientists decided to replace one of the old monkeys with a new one. The first thing this monkey did was climb the ladder to get a banana stack, and was immediately beaten by the rest of the monkeys. After many attacks, the monkey learned that he should not climb the ladder if he did not want to be hit, even though he did not understand why. Next, the scientists added another monkey, and the same thing happened again. Even the first replaced monkey participates in the fight for the second replaced monkey. So on, so on ... things went the same way until all five monkeys were replaced.
They kept hitting the monkeys who wanted to climb stairs, even though they had never been sprayed with cold water. If you could ask these monkeys why they beat monkeys trying to climb ladders, the answer would be "I don't know, that's what happens every day" like, "PEOPLE. WHAT IS ME ".
At the same time, in 1848 when Dan Rice, a very famous clown at the time, decided to use the Bandwagon convoy (originally used to talk about a train / car used to transport trains. parades, circus or entertaining troupes) and music to attract attention for a political campaign and as a result he was very successful. With the results of that experiment, the Bandwagon effect began to be used a lot to talk about a person who tends to follow or believe in something many people do even though they may not understand why. .
Since then, many other politicians have joined the convoy with the desire to follow Dan Rice's success. Even in the 1900 presidential election, the bandwagon was considered the standard in campaigning and the idiom "jump on the bandwagon" (implying disparity) to refer to those who tried to squeeze into publicity without regard for who the object is.
Above is the article What is a bandwagon? Things to know about the Bandwagon train effect ”, hope you will have more useful knowledge related to Bandwagon, and be very alert to events in life in general and in the crypto market in particular, to ensure your safety. and about your capital!
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