FOMO: Understanding the Psychology Behind Fear of Missing Out: The neurobiological drivers of FOMO are much stronger than you might think.
- The term "Fear of Missing Out" (FOMO) has become a buzzword in recent years.
- In the crypt-verse, it is a well-acknowledged phenomenon, we know it plays a strong role in the volatility, the Fear and Greed Index, and most incidence of sudden, sharp price increases.
- Extreme FOMO usually = Extreme Volatility. Most longtime Bitcoiners will tell you when it starts to feel like crypto is everywhere & everyone's doing it, even your uber-conservative uncle is suddenly talking about this "Bitcoin thing", the top is in. FOMO can be a top signal but it is also something that influences even the savviest WEB3 OG.
So, is FOMO a "bad" thing?
No. It can be damaging in some instances when the FOMO becomes obsessive (see the Social Comparison section below).
In general, the FOMO instinct has "good" intentions - it is a pro-social driver to "belong."
It's a part of our evolutionary neurobiology. FOMO activates our most basic, primal needs for connection, attachment, and belonging - FOMO at it's core is a survival instinct.
The Roots of FOMO
- FOMO is ancient.
- The origins of FOMO are driven by hardwired, primal needs for tribal belonging, social connection, and acceptance.
- In our ancestral days, being isolated from the community was a survival threat,. It was essential to stay connected to the tribe in order to live and thrive.
- Today, our brains are still wired this way, and the fear of missing out on something essential that "other people" have access to, obtain, or participate in creates a neurobiological response - in other words, the nervous system reacts to this with or without the permission of your pre-frontal cortex (decision making part of the brain).
- FOMO is permissionless from a neurobiological perspective. Meaning it is not a pre-frontal cortex sort of decision about whether or not you feel this impulse. If the neural pathway lights up you will feel it. Period. However, you still have a choice about what you will do with said felt impulse.
- That is where mindfulness practice comes in very handy.
- Missing out on a financial opportunity, social gathering, or obtaining entrance into the group (think NFT membership, white lists, discord communities, access passes, limited supply/scarcity of resources) still elicits the same emotional-neurobiological response our ancestors felt when they learned that Tom, Dick, and Harry were leaving at dawn to hunt a large beast, and you were not invited. "I am hungry too, I want to hunt too, I'm a hunter and a darn good one. Why did they not ask me to come? Will there be enough for me? I need to go! Tom, Dick and Harry are not going to show up to the tribe picnic on Saturday looking all fat, I'm gonna get mine!! I will go on the hunt to make sure I get some meat for me and my family. I am going, whether they like it or not!" But he doesn't bother to check the weather report, research the beast or consult with his wife, other beast hunters, or his neighbors. He just runs out and puts his money down on a new weapon and shows up for the hunt a few hours later- without sleep. That is FOMO-driven behavior.
Scarcity, Limited Access or Availability
- Will there be enough for me? Will I get mine?
- This is a survival instinct.
- Limited availability or perceived scarcity is a huge element increasing FOMO-driven impulsive and sometimes pretty irrational behavior.
- Irrational behavior and investments frequently occur when something is perceived to be scarce, time-limited, and/or urgent: the supply or price offer for a particular asset is going up or ending. This is where the adage aping in comes from: when people act impulsively and unwisely invest, "before it's too late," without "doing their own research", and often outside their means
Social Comparison
This is the most psychologically destructive aspect of FOMO: the evaluative component of self-worth or insides to other peropls outsides.oneself to other people's outsides. "social comparison", this mainly negatively affects mental well-being and can catalyze considerable anxiety and depressive disorders. Social comparison refers to evaluating one's abilities, activities, material or digital goods, finances, and accomplishments against others. In the world of crypto, social comparison can lead to feelings of FOMO when individuals see their friends, family, or colleagues gaining access to, obtaining or making significant profits from their investments.
The Impact of FOMO on Crypto Investment
FOMO can significantly impact the crypto market, driving prices up and leading to market volatility.
The Influence of Social Norms on FOMO
Social norms are the unwritten rules that dictate what is socially acceptable within a group or society. On social media, in WEB3 or WEB2 games, and in NFT communities, these norms are often represented through experiences, flexing material or digital objects, cards, profile pics, wearables, or skins to show belonging. It is a social nod tipping one another off- hey - we belong to the same social network.
FOMO in and of itself is not bad, there are no bad desires or needs (a topic for another article) the question simply becomes since I know this is a thing, how do I choose to navigate this- allow it to drive me mindlessly, and reactively? Or, is it possible for me to slow down a minute, and make an intentional plan (including and honoring my needs for belonging) while skillfully and effectively managing the FOMO when it hits?
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The FOMO bottom line: it's a thing; in the words of Ice Cube,
"You better check yo'self before you wreck yo'self."