In 2021, the global cryptocurrency market cap soared past $3 trillion, drawing millions of new participants eager to capitalize on skyrocketing token prices. Stories of early Bitcoin adopters turning modest investments into millions fueled a modern-day gold rush. Today, there are over 560 million crypto users worldwide, with daily trading volumes regularly exceeding $100 billion across major exchanges.
Despite these impressive figures, the market remains characterized by extreme volatility, rapid boom-and-bust cycles, and a dominant focus on short-term gains. For instance, the “Central & Southern Asia and Oceania: 2024 Geography of Crypto” report highlights that Indonesia’s crypto market is significantly driven by trading activities. Barry Matthew Meyer, Product Manager at Pintu, an Indonesia-based crypto exchange, noted that the country’s growing crypto market is primarily due to the novelty of crypto and the promise of quick profits, with many people viewing crypto as a speculative financial instrument. This aligns with the ongoing influence of the crypto get rich quick mentality that shapes user behaviour.
This article investigates the effects of this speculative culture—how it impacts market stability, innovation, regulation, and public trust—and explores whether the obsession with quick profits undermines crypto’s long-term potential. It also highlights the growing call for financial education as a foundation for sustainable adoption.
Speculation vs. Investment: Understanding the Divide
The crypto market attracts both seasoned investors and wide-eyed newcomers chasing viral success stories. However, a fundamental divide exists between speculative trading and long-term investment—one that could shape crypto’s future adoption.
Speculation focuses on short-term price movements, often driven by hype. Traders pile into volatile tokens hoping for quick profits. This behaviour intensifies during bull markets. For example, according to a 2024 MarketWatch report, long-term Bitcoin holders (those holding for over 155 days) sold more than 366,000 BTC per month at the peak of a rally, marking the highest selling pressure since April that year. The pattern suggests increased profit-taking among mid-term holders, contributing to volatility. This trend exemplifies the impact of speculative investing on crypto adoption, where rapid sell-offs affect trust and discourage sustainable engagement.
Meme coins such as Pepe and Bonk gained traction not through technological innovation but through rapid, community-fueled speculation.
In contrast, long-term investment is grounded in fundamentals and a belief in the underlying tech. Investors evaluate utilities, such as Ethereum’s role in DeFi or Chainlink’s importance in smart contracts.
According to John Canally, Chief Portfolio Strategist at TIAA Wealth Management, speculators focus on making quick profits by trading based on short-term price changes. At the same time, investors are more interested in long-term growth and returns, taking on financial risks they can understand and manage.
Binance founder Changpeng Zhao (CZ) echoed this sentiment in a recent post on X, where he criticized the growing obsession with quick profits. He emphasized that real wealth in crypto and in any market is built over time, not overnight.
Long term gains are the biggest gains.
— CZ 🔶 BNB (@cz_binance) January 27, 2023
His perspective reinforces the growing consensus among industry leaders that a long-term mindset is key to meaningful success in the space.
Understanding this divide is essential. While speculative trading adds liquidity, it also fosters volatility and erodes trust—especially among institutional investors and risk-averse users. For crypto to mature, the mindset must shift from chasing fast gains to making informed, value-based investments.
Market Volatility: The Ripple Effects of Speculative Behaviour
Crypto’s extreme volatility is a defining characteristic—and a significant barrier to mainstream adoption. Much of this instability stems from speculative behaviour rather than underlying technological shifts.
Retail investors, driven by FOMO, often enter during bull runs and exit during downturns—amplifying price swings. Macroeconomic indicators and project fundamentals are frequently outweighed by sentiment-driven buying and selling.
Take Dogecoin’s 2021 surge: fueled by memes and Elon Musk’s tweets, Dogecoin’s market capitalization skyrocketed past $80 billion at its peak, only to lose over 90% of its value soon after, leaving many inexperienced investors with significant losses.
Such volatility discourages the very players—institutions, pension funds, and conservative investors—who are key to crypto’s long-term growth.
In essence, the very behaviours that offer quick profits may be undermining the market’s credibility and long-term resilience. These are classic signs of the conflict between short-term crypto gains vs long-term growth, a dilemma the industry must address to mature.
Public Perception: Shaped by the Chase for Fast Profits
The public’s perception of crypto is deeply influenced by its association with get-rich-quick schemes. Rather than being seen as a transformative financial innovation, crypto is often viewed as a digital casino.
Media narratives amplify this view, focusing on viral meme coins, overnight millionaires, and dramatic crashes, while ignoring legitimate advancements. A Pew Research Center survey revealed that roughly 75% of Americans familiar with crypto do not trust its safety or reliability.
Scandals such as BitConnect, Terra’s UST/LUNA collapse, and rampant pump-and-dump meme coin schemes have only deepened skepticism. Terra alone wiped out over $40 billion in market value, devastating retail investors and reinforcing the notion that crypto is a high-risk gamble. These trends have sparked increasing debate around whether cryptocurrency encourages a gambling mentality in investments, further complicating its image in the eyes of the public and policymakers.
This perception also influences policy. In countries like the U.S. and U.K., regulators are cautious, often citing investor protection and systemic risk, concerns heightened by the sector’s speculative image. It’s no surprise that crypto market volatility and adoption challenges continue to be a topic of concern in public and regulatory discussions.
Unless the industry pivots toward transparency, education, and meaningful use cases, it risks alienating the audiences—retail and institutional—it needs for mass adoption.
Impact on Innovation: Are Short-Term Gains Holding Crypto Back?
The obsession with fast profits doesn’t just skew investor behaviour—it also hinders technological progress. When hype trumps utility, genuine innovation takes a back seat.
Consider the DeFi Summer of 2020. While it brought attention and liquidity to decentralized finance, it also produced countless copycat protocols that vanished once token rewards dried up. According to CoinGecko, over 7,500 cryptocurrencies launched during the 2020–2021 bull run have since become inactive—over 53% of all “dead” coins on record.
This churn rate reflects a broader trend: projects that promise quick returns often outshine those building long-term solutions.
When the majority of attention and funding go to flashy, short-lived trends, critical challenges, like improving wallet security, reducing gas fees, or onboarding non-technical users, go unresolved.
Education: The Foundation of Responsible Adoption
If there’s one antidote to the “get rich quick” mindset, it’s education. Financial literacy can empower users to make informed decisions, avoid scams, and prioritize sustainable investment strategies.
Industry players are stepping up. Bitcoin Depot, recognized as one of the largest crypto ATM networks, actively promotes financial literacy and inclusion. They have implemented educational programs aimed at empowering communities by providing knowledge about cryptocurrency and its potential benefits. These efforts underscore their commitment to fostering long-term investing and financial empowerment. Both Coinbase and Binance offer comprehensive educational platforms. Coinbase Learn provides resources tailored for beginners to understand cryptocurrencies like Bitcoin and Ethereum. Similarly, Binance Academy offers an extensive library of articles, videos, and quizzes covering various aspects of blockchain and cryptocurrency. These platforms are designed to educate users on blockchain basics, trading strategies, and risk management.
Globally, there’s momentum to incorporate digital finance into school curricula. In England, new educational initiatives now teach students how to manage digital payments and recognize online fraud.
The absence of education has already proven costly. The Terra/LUNA collapse hit hardest in developing nations, where financial education is scarce. A Chainalysis report confirmed that retail investors in these regions bore the brunt of the $40 billion loss.
Educating users isn’t just about protection—it’s about building a stronger, more credible ecosystem. Fostering a better understanding of investor behaviour in crypto markets can help shift the narrative from risky gambling to responsible participation. And as mainstream professionals begin to pay closer attention, such as financial advisors reconsidering their stance on digital assets— ignoring crypto is no longer an option.
READ ALSO: Why Ignoring Crypto Is No Longer An Option For Financial Advisors
Final Thoughts:
So, is the “get rich quick” mentality hurting crypto’s long-term adoption? In many ways, yes—but it’s not the full story. Speculation has undeniably brought energy, attention, and liquidity into the space. It’s part of what made crypto go mainstream in the first place. But when short-term hype consistently overshadows long-term value, the cost becomes clear: shaken investor confidence, stifled innovation, negative public perception, and regulatory hesitation.
For crypto to reach its full potential—not just as a speculative asset, but as a transformative financial technology—the culture needs to evolve. That doesn’t mean speculation has no place. It means it can’t be the only driver. A healthier ecosystem is one where financial education is widespread, innovation is nurtured, and investors are empowered to think long-term.
Ultimately, the future of crypto won’t be defined by overnight millionaires, but by the projects, people, and communities willing to play the long game.
Disclaimer: This article is intended solely for informational purposes and should not be considered trading or investment advice. Nothing herein should be construed as financial, legal, or tax advice. Trading or investing in cryptocurrencies carries a considerable risk of financial loss. Always conduct due diligence.
If you want to read more market analyses like this one, visit DeFi Planet and follow us on Twitter, LinkedIn, Facebook, Instagram, and CoinMarketCap Community.
Take control of your crypto portfolio with MARKETS PRO, DeFi Planet’s suite of analytics tools.”
