What is Fear of Missing Out (FOMO), and Why is It Important to the Space Economy?

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The Gravity of Absence

The feeling is an unnervingly modern one, a low-grade hum of anxiety that accompanies the glow of a smartphone screen. It’s the apprehension that somewhere, someone else is living a more rewarding life, attending a more exciting event, or seizing a more lucrative opportunity. This sensation, now commonly known as the Fear of Missing Out, or FOMO, is often dismissed as a trivial byproduct of a hyper-connected, social media-saturated culture. Yet, this view fundamentally misunderstands its nature. FOMO is not a fleeting social media quirk; it is a potent form of social anxiety, a pervasive apprehension that one is absent from rewarding experiences others are having. It is a powerful driver of human behavior, capable of influencing not just personal choices but also the grand currents of economic history and geopolitical strategy.

The same psychological force that compels an individual to anxiously refresh a social media feed is not confined to the personal sphere. It echoes in the grand dramas of the past, from the speculative frenzies that gripped entire nations to the mass migrations that settled continents. It is a force that can inflate market bubbles to impossible proportions and then, in an instant, reverse its polarity to trigger their catastrophic collapse. This deep-seated human anxiety, amplified by technology and narrative, has left an indelible mark on our collective history.

Today, this very same dynamic is playing out on the grandest stage imaginable: the final frontier. The modern space economy, a growing ecosystem of private enterprise and national ambition, is becoming a powerful new arena for this ancient fear. The race to commercialize, colonize, and control the domain beyond Earth is not just a matter of technological progress or economic expansion. It is a contest fueled by a multi-layered FOMO, where nations fear being left behind in the ultimate strategic high ground, investors fear missing the next trillion-dollar opportunity, and the public is captivated by the spectacle of a new era of exploration.

This article explores the significant and often-underestimated influence of the Fear of Missing Out. It begins with a deep examination of the psychology that underpins this phenomenon, exploring its roots in our fundamental need for social connection and the cognitive mechanics of comparison. It then traces the historical precedents of collective FOMO through three pivotal economic manias: the Dutch Tulip Craze, the 19th-century gold rushes, and the dot-com bubble of the late 1990s. Finally, it will provide a comprehensive analysis of how these very same psychological and social dynamics are shaping the high-stakes development of the modern space economy, influencing the decisions of governments, corporations, and individuals as humanity reaches for the stars.

The Psychology of Missing Out

To understand the immense influence of FOMO, one must first recognize it not as a new condition but as a modern manifestation of a timeless human impulse. It is an intricate interplay of social needs, cognitive biases, and technological amplifiers that culminates in a distinct and often distressing emotional state. This anxiety is more than simple envy; it is a complex psychological response to the perceived threat of social exclusion and a powerful motivator for compulsive behavior.

Defining FOMO: An Ancient Need in a Modern World

Formally, FOMO is defined as a “pervasive apprehension that others might be having rewarding experiences from which one is absent.” This experience is not a single feeling but a two-part process. It begins with the perception of missing out, a cognitive awareness of an event or opportunity from which one is excluded. This perception is then followed by a compulsive behavior, an urge to act in order to maintain social connections and alleviate the anxiety of absence.

The psychological underpinnings of this phenomenon are deeply rooted in fundamental human needs. Self-Determination Theory, a broad framework for understanding human motivation, posits that all individuals have innate psychological needs for competence, autonomy, and social relatedness. FOMO is largely understood as a negative emotional state that arises from deficits in these areas, particularly the need for social relatedness. It is a direct consequence of unmet needs to belong and to form strong, stable interpersonal relationships. In this sense, the anxiety of FOMO is similar to the negative emotional effects of social ostracism; it is the psychological pain of feeling left out.

While often associated with social gatherings, FOMO is not a monolithic experience. It can manifest in different forms, reflecting the varied domains in which a person can feel left behind. One common type is the Fear of Missing Social Opportunities (FoM-SO), which is the classic anxiety of being excluded from parties, vacations, or other group events. Another distinct form is the Fear of Missing News and Novel Information (FoM-NI). This version is characterized by a constant anxiety about not being up-to-date with current events, professional developments, or the latest trends. Individuals experiencing FoM-NI may compulsively check news sites or professional networks, driven by the fear of being uninformed and falling behind their peers in knowledge or career progression.

This underlying anxiety is not an invention of the digital age. The phrase “keeping up with the Joneses” described a similar social pressure long before the advent of the internet. It captured the pre-digital urge to match the possessions and social standing of one’s neighbors, a clear analogue to the comparative anxiety that fuels modern FOMO. The concept has been around for centuries, with evidence of this social fear appearing even in ancient texts. What has changed is the intensity, frequency, and accessibility of the triggers. The term FOMO itself was only introduced in the early 2000s, its emergence coinciding with the rise of social networking sites that made the curated lives of others relentlessly visible.

The Engine of Comparison: Social Comparison Theory

The psychological engine that drives FOMO is social comparison. In 1954, social psychologist Leon Festinger proposed his Social Comparison Theory, a foundational concept in social psychology. The theory centers on the belief that individuals have an innate drive to gain accurate self-evaluations. When objective, non-social means for evaluation are unavailable, people turn to the social world, evaluating their own opinions, abilities, status, and success by comparing themselves to others. This process is a natural and common human tendency, a form of mental measurement used to assess one’s self-worth and social standing.

This comparison process generally moves in one of two directions, each with distinct psychological effects. The first is downward social comparison, which occurs when an individual compares themselves to others who are perceived as being worse off. This can have a positive effect on self-esteem, fostering feelings of gratitude or contentment with one’s own situation. People in a negative mood are often more likely to engage in downward comparison as a way to feel better about themselves.

The second, and far more relevant to FOMO, is upward social comparison. This happens when an individual compares themselves to those they believe are better than them in some way – more successful, more attractive, or having more exciting experiences. While upward comparison can sometimes serve as a source of inspiration and motivation, pushing an individual to improve their own situation, its effects are frequently negative. Repeated upward social comparisons can trigger potent feelings of envy, frustration, and resentment. It can lead to a significant drop in self-esteem, fostering a sense of inadequacy and inferiority. In the context of constant exposure to idealized images, such as those prevalent on social media, this process can contribute to the development of anxiety and depressive symptoms.

The link between social comparison and FOMO is direct and powerful. FOMO is often triggered by the simple act of observing the experiences, accomplishments, or lifestyles of others, whether on social media or in real life. This observation initiates an upward social comparison. A person experiencing FOMO feels insufficient or left out when they perceive that others are having more fulfilling lives. This feeling of inadequacy is the emotional core of FOMO. The visual nature of platforms like Instagram and Facebook makes it incredibly easy for individuals to quickly and almost automatically compare themselves not only with people they know but also with complete strangers. This constant stream of comparison opportunities enhances the desire to present a perfect image of oneself, perpetuating a cycle where everyone’s curated best moments become the benchmark for everyone else’s ordinary reality.

The Digital Amplifier: How Technology Supercharges FOMO

If social comparison is the engine of FOMO, then modern digital technology is the supercharger. Social media platforms, with their constant stream of updates and notifications, are perfectly engineered to exploit and amplify the psychological mechanisms that give rise to this anxiety. They have created an environment where the triggers for FOMO are not occasional events but a constant, pervasive presence.

A primary mechanism through which social media exacerbates FOMO is the presentation of curated realities. Social media is often described as a “highlight reel,” a platform where users predominantly share their successes, triumphs, and most exciting moments. This creates a distorted perception of the lives of others. Users are constantly exposed to a stream of airbrushed vacation photos, career achievements, and happy social gatherings. Even with the intellectual understanding that these images are manipulated or represent only a fraction of reality, they can still make individuals feel insecure about their own appearance or life circumstances. This relentless exposure to idealized versions of other people’s lives makes upward social comparison an almost constant state of being for heavy social media users, fueling feelings of envy and dissatisfaction.

This psychological vulnerability is exploited by the very design of these platforms, which are built around a powerful dopamine-driven feedback loop. Much like a gambling compulsion, social media use can create psychological cravings. When a user receives a like, a share, or a favorable comment on a post, it can trigger the release of dopamine in the brain’s reward center. This is the same “feel-good” chemical associated with other pleasurable activities. The key to its addictive potential is the principle of intermittent reinforcement. The outcome of any given post or check of the feed is unpredictable, much like pulling the lever on a slot machine. This uncertainty – not knowing when the next notification will arrive – keeps the user in a constant state of anticipation and reinforces the compulsive behavior of checking the phone. This biological mechanism creates a powerful cycle of digital addiction, where the pursuit of the next dopamine hit keeps users returning again and again.

The ’round the clock’ nature of modern communication technology ensures that this cycle is never broken. The smartphone provides a continuous, 24/7 portal to the social world, meaning the source of FOMO-inducing information is never further than one’s pocket. This constant connectivity can lead to a vicious cycle: an individual feels lonely or anxious, so they turn to social media for a sense of connection. However, increased engagement often leads to more upward social comparisons and a greater awareness of missed events, which in turn heightens feelings of inadequacy and loneliness. This negative emotional state then prompts more frequent checking, perpetuating the cycle.

This effect is further intensified by features designed to create a sense of urgency, such as the “Stories” function popular on platforms like Instagram and Facebook. Because this content is temporary and disappears after 24 hours, it creates a powerful incentive for users to check the platform frequently so as not to “miss out.” This ephemeral nature plays directly into the core anxiety of FOMO, reinforcing the habitual and anxious scrolling that characterizes problematic social media use.

The Mental and Behavioral Toll

The cumulative effect of this technologically amplified social anxiety can be substantial, with significant consequences for both mental and physical well-being. A large body of research has established a strong link between high levels of FOMO and a range of negative psychological outcomes. Individuals who experience FOMO to a greater extent are more vulnerable to mood disturbances, fatigue, stress, and decreased sleep quality. The condition is a significant predictor of heightened negative affect and is strongly associated with lower overall life satisfaction.

FOMO can directly contribute to or worsen existing mental health conditions, especially depression and anxiety disorders. The constant process of comparing one’s own life to the curated highlight reels of others can lead to feelings of sadness, shame, and low self-esteem. This can create a vicious cycle, as people suffering from depression or anxiety may spend more time on social media as a form of escape, only to find that this increased usage exacerbates their symptoms. Some research even suggests that social media use activates a part of the brain involved in fear, a close cousin of anxiety. The physical symptoms associated with this anxiety can be tangible, including stomach tension, nausea, headaches, body aches, and an increased heart rate.

The psychological distress of FOMO often translates into problematic behaviors. The most common is compulsive smartphone use, characterized by constantly checking for notifications and alerts. This can lead to social media addiction, where digital connections are prioritized over real-life relationships. This behavior, sometimes called “phubbing” (snubbing others in favor of one’s phone), can damage the very real-world connections that would otherwise alleviate feelings of loneliness.

In some cases, the desire to avoid missing out can lead to engagement in risky activities. To maximize socialization opportunities and “fit in” with peers, individuals with high levels of FOMO may be more willing to engage in behaviors like excessive alcohol consumption or drug experimentation. The fear of missing out has also been linked to dangerous behaviors like distracted driving, as individuals feel compelled to stay connected even when behind the wheel.

Deeper Analysis: The Primal Roots of a Modern Fear

The visceral and often overwhelming nature of FOMO suggests that it is more than just a surface-level emotional response to social media. It appears to be a modern expression of a deeply ingrained, ancient survival instinct. For early humans, social connection was not a luxury; it was a prerequisite for survival. Belonging to a group provided protection from predators, access to shared resources, and opportunities for reproduction. Exclusion from the tribe was, in a very real sense, a death sentence. The human brain evolved to be exquisitely sensitive to any signs of potential social exclusion, developing powerful emotional responses like anxiety and distress to signal this threat.

FOMO can be understood as a miscalibrated version of this ancient survival alarm. The core anxiety driving the experience is not about the missed event itself – the missed food at a dinner or the missed music at a concert. Instead, the fear is centered on the potential social consequences of that absence. It is the anxiety that one’s friends will bond, create shared memories, and grow closer to one another, all without you. This plants seeds of worry that one might be viewed as uninvolved or unable to keep up, and that this could lead to a weakening of social ties and, eventually, exclusion from the group altogether.

Social media provides a constant, high-volume stream of data that this primal part of the brain can interpret as evidence of one’s impending exclusion. A single photograph of friends connecting on social media can trigger this alarm system, generating a powerful anxiety response that feels disproportionate to the actual event. The brain, hardwired for a world where social exclusion was a mortal threat, struggles to differentiate between a real threat to one’s social standing and a curated image on a screen. The “fear” in Fear of Missing Out is the echo of a primal fear for one’s place within the tribe.

This misunderstanding of the threat’s nature leads to a tragic irony: the behaviors adopted to combat FOMO often create the very outcome that is most feared. The individual, driven by a fear of disconnection, immerses themselves in the digital world. They spend hours scrolling through feeds and maintaining virtual connections in an attempt to stay “in the loop.” This preoccupation with the digital sphere inevitably comes at the expense of engagement with the real world. Time spent compulsively checking a phone is time not spent in face-to-face interaction, pursuing hobbies, or simply being present in one’s own life. The relentless effort to avoid missing out on the curated social lives of others causes the individual to miss out on the authentic experiences of their own life. This creates a self-fulfilling prophecy, where the fear of isolation leads to behaviors that foster genuine loneliness and dissatisfaction, perpetuating a vicious cycle of digital immersion and real-world disconnection.

A History of Collective FOMO: Three Economic Manias

The Fear of Missing Out is not merely an individual affliction; it can scale to the level of societies, driving collective behaviors that shape history. When the anxiety of being left behind infects a large group, it can fuel speculative manias and economic bubbles of astonishing scale. These historical episodes are not just lessons in finance; they are case studies in social psychology, demonstrating how a shared narrative of opportunity, coupled with a collective fear of exclusion, can cause rational decision-making to be abandoned in favor of herd behavior. By examining these past events, it becomes clear that the psychological dynamics of FOMO have been a powerful, recurring force in the economic world long before the term itself was ever coined.

The Tulip and the Crowd: Status and Speculation in the Dutch Golden Age

In the 1630s, the Dutch Republic was experiencing its Golden Age, a period of unprecedented economic prosperity, cultural flourishing, and global trade dominance. A wealthy merchant class emerged with significant surplus income and a strong desire to display its newfound status. It was into this environment that the tulip, an exotic flower recently introduced from the Ottoman Empire, arrived. With its rich colors and intricate designs, the tulip was unlike anything seen before in Holland and quickly became the ultimate luxury item.

The flower itself was not the asset; it was the symbol. Owning rare and unique tulip bulbs became a public declaration of wealth, taste, and social standing. This cultural symbolism was the initial spark for what would become one of history’s most famous speculative bubbles. What began as a hobby for wealthy connoisseurs soon spread throughout Dutch society. As demand for the most prized varieties grew, so did their prices, which rose steadily through the 1620s and early 1630s.

The true mania took hold around 1634, fueled by a potent combination of psychological drivers. The most powerful of these was a classic herd mentality. People from all walks of life, from the wealthiest merchants to the most modest craftsmen, rushed to enter the tulip market. Their motivation was not a rational assessment of the intrinsic value of a flower bulb, but the simple observation that their neighbors were getting rich. The fear of being the only one left out of this incredible opportunity for quick wealth became overwhelming. This collective FOMO created a self-reinforcing feedback loop: rising prices attracted more buyers, whose demand pushed prices even higher.

This speculative fervor was amplified by the media of the day. Pamphlets and word-of-mouth spread powerful stories of ordinary individuals amassing fortunes overnight. These narratives cultivated a strong market psychology, compelling even the most skeptical to abandon caution and join the frenzy. The situation was further enabled by financial innovation. Because the bulbs were in the ground for much of the year, a futures market known as “windhandel” (wind trade) developed. Traders bought and sold contracts for the future delivery of bulbs, which could then be resold multiple times. This detached the trade from the physical asset, transforming the tulip bulb into a pure instrument of speculation and making it easier for more people to participate. Trades often took place in local pubs, where each transaction was celebrated, further fueling the euphoric atmosphere.

At its peak in the winter of 1636-1637, prices reached astronomical levels. A single rare bulb could be traded for the price of a luxurious home or the equivalent of a skilled craftsman’s lifetime earnings. The collective belief was that prices would continue to rise indefinitely. The collapse, when it came in February 1637, was sudden and catastrophic. At a routine bulb auction in the city of Haarlem, buyers simply failed to appear at the high asking prices. Confidence evaporated almost instantly. The collective FOMO that had driven the euphoric buying flipped into a collective panic. Everyone wanted to sell, but no one was willing to buy. Prices plummeted by over 95% in a matter of weeks, leaving countless speculators holding contracts worth a fraction of what they had paid.

The Fever for Gold: The Rush for Instant Wealth

If Tulip Mania was a speculative frenzy confined to contracts and pubs, the gold rushes of the 19th century were a physical manifestation of FOMO on a continental scale. The discovery of gold at Sutter’s Mill in California in 1848 triggered a global rush, a tidal wave of human movement driven by the promise of instant, life-changing wealth.

The core psychological driver of the gold rushes was the “California Dream.” This was the powerful, buoyant feeling of a “free-for-all,” an environment of unparalleled income mobility where any individual, regardless of their station in life, could become abundantly wealthy almost overnight. This narrative of accessible, democratic fortune created an intense and widespread fear of missing out on a unique, fleeting opportunity. The news of the gold discovery spread like wildfire, and the fear of arriving too late, after all the easily accessible gold had been claimed, propelled a massive and rapid migration.

In 1848, California’s non-Indian population was around 14,000. By the end of 1849, it had soared to nearly 100,000, and by 1853, it was 300,000. This mass movement was composed primarily of young, able-bodied men who left their homes and traveled thousands of miles under arduous conditions, all driven by the collective anxiety of being left behind. The spectacle was one of pure FOMO: a restless, dauntless population rushing to a new frontier, convinced that their fortune was there for the taking if only they could get there in time.

The reality for most prospectors was far from the dream. The free gold in stream beds was depleted quickly, and while some individuals did strike it rich, the majority of diggers and mine owners found the endeavor unprofitable, often going bust. The true fortunes of the gold rush were made not by those panning for gold, but by the merchants, transportation providers, and other entrepreneurs who built an economy around the rush itself. They sold supplies, operated ferries, and ran saloons, catering to the needs and desires of the hundreds of thousands who had been drawn in by the collective FOMO. The gold rush demonstrates how an entire economic and social infrastructure can be rapidly constructed to service a population mobilized by the fear of missing out.

The Dawn of the Digital Dream: The Dot-Com Bubble

The dot-com bubble of the late 1990s stands as the most direct historical precursor to the tech-driven FOMO of the 21st century. It was a period of speculative mania fueled by the widespread adoption of the internet and a collective belief that this new technology had fundamentally and permanently changed the rules of business and finance.

A powerful narrative of a “New Economy” took hold, one in which traditional metrics of corporate valuation, such as profits and assets, were deemed obsolete. The new paradigm was “growth over profits.” Companies were valued not on their current performance but on their potential to capture a massive future market share in the growing digital world. This narrative was relentlessly amplified by a media frenzy. Financial news outlets, particularly cable channels like CNBC, reported on the stock market with the suspense and excitement of a sporting event. Stories of people quitting their jobs to become day traders were common, creating a sense of a historic, can’t-miss opportunity.

This environment fostered a potent mix of investor overconfidence, herd behavior, and intense FOMO. Both individual retail investors and seasoned institutional players felt immense pressure to participate. With the Nasdaq composite index doubling in value in 1999 alone, the fear of being left behind in the greatest wealth-creation event in a generation became a dominant market force. This psychological pressure was supercharged by an abundance of easy capital. Low interest rates and a flood of venture capital funding meant that startups could secure massive investments with little more than an idea and a “.com” in their name, often without a viable business model or even a finished product.

The result was a classic speculative bubble. Companies with no revenue and no clear path to profitability went public and saw their stock prices triple or quadruple in a single day. Lavish spending on elaborate offices and extravagant “dot-com parties” became commonplace, reinforcing the aura of invincibility. The bubble reached its peak on March 10, 2000, when the Nasdaq index closed above 5,000. The subsequent crash was triggered by a combination of factors, including a modest interest rate hike by the Federal Reserve and a few high-profile tech companies placing large sell orders on their own stock. This pricked the bubble of confidence. The narrative broke, and the FOMO that had driven prices to irrational heights reversed into a panicked fear of holding worthless assets. As investment capital dried up, cash-strapped dot-coms collapsed. By the end of 2001, most had gone bust, and investor losses were estimated to be around $5 trillion.

Deeper Analysis: The Social Contagion of Speculation

These historical manias, though separated by centuries and centered on vastly different assets, reveal a common underlying pattern. They are best understood not as purely rational market phenomena but as episodes of collective emotional contagion. In each case, a powerful narrative of easy and rapid wealth creation acts as a kind of virus. The Fear of Missing Out serves as the primary transmission vector for this virus, ensuring its rapid spread through the population.

The logic of the bubble is not based on intrinsic value but on the “greater fool theory” – the belief that no matter how high a price you pay for an asset, there will always be a “greater fool” willing to buy it from you at an even higher price. This theory is entirely predicated on a continuous and expanding pool of new participants, a pool that can only be supplied by the infectious power of FOMO. As more people join the frenzy, the narrative appears more credible, which in turn generates more FOMO, creating a powerful, self-sustaining cycle of speculative desire. The language used to describe these events – “mania,” “frenzy,” “euphoria,” “panic” – is the language of emotion, not of rational calculation. FOMO is the mechanism that transforms individual desire into collective delusion, providing the psychological fuel necessary to inflate an economic bubble.

The Final Frontier of FOMO: The Modern Space Economy

The same psychological forces that drove speculation in tulips and technology stocks are now converging on the cosmos. The modern space economy, a dynamic and rapidly expanding sector, has become the newest and perhaps most complex arena for the Fear of Missing Out. This is not the government-funded, national-prestige-driven space race of the 20th century. Instead, it is a multifaceted ecosystem, defined by the rising commercialization of space and an unprecedented influx of private capital. This “New Space” era is characterized by a powerful, multi-layered FOMO that is influencing the behavior of nations, investors, and the public alike, accelerating development at a pace that is both exhilarating and potentially perilous.

An Overview of the New Space Ecosystem

The global space economy is already a substantial enterprise and is projected to grow exponentially. In 2023, the total value of the sector reached $570 billion, a figure that is nearly double its size just a decade prior. Projections from various analysts suggest that it could become the next trillion-dollar industry, with some estimates reaching as high as $1.8 trillion by 2035. This growth is driven by a significant transformation of the sector, as space becomes further integrated into the broader global economy. Space infrastructure is no longer just for exploration; it is a vital enabler of growth in terrestrial sectors such as telecommunications, transportation, agriculture, and energy.

The New Space economy is a complex ecosystem composed of numerous interconnected sectors. To understand how FOMO operates within this domain, it is essential to first map its key components.

The Players in the New Space Race

The explosive growth across these sectors is being driven by a diverse set of actors, each motivated by their own distinct version of the Fear of Missing Out. This creates a unique environment where geopolitical, financial, and public anxieties intersect and reinforce one another.

Geopolitical FOMO: The Race for the High Ground

A new space race is undeniably underway, but it is far more complex than the bipolar competition of the Cold War. While the original race between the United States and the Soviet Union was primarily driven by the pursuit of national prestige and the demonstration of ideological superiority, the modern contest is a multipolar affair with intertwined economic and military motivations. The primary rivalry is between the U.S. and China, but other significant players, including Russia, India, Japan, and the European Space Agency, are also making ambitious moves. More than 80 countries now have a presence in space, and the number of national space agencies continues to grow.

This geopolitical competition is fueled by a potent, national-level FOMO. Space is increasingly recognized as the “ultimate strategic high ground.” Dominance in this domain offers significant advantages across military, economic, and diplomatic spheres. Nations fear that if a rival achieves a superior position in space, they will be left at a critical disadvantage on Earth. This fear is not abstract. Modern militaries are deeply reliant on space-based assets for communication, navigation (GPS), and intelligence gathering. The global economy depends on satellite infrastructure for everything from financial transactions to weather forecasting.

This national FOMO drives massive government investment and ambitious, high-profile programs. The U.S.-led Artemis program, which aims to return humans to the Moon and establish a sustainable presence, is a direct response to China’s rapidly advancing lunar ambitions. Both nations, along with a potential Russian-Chinese alliance, are planning lunar bases. The motivation is clear: the fear that a competitor will be the first to establish a foothold, control valuable resources (such as water ice at the lunar poles), and set the rules for future activity on the Moon and beyond. Just as in the Cold War, achieving space milestones is a powerful tool of propaganda and a demonstration of national power and technological prowess on the world stage.

Venture Capital’s Fear of the Missed Moonshot

The commercialization of space has been supercharged by a massive influx of private capital, particularly from venture capital (VC) firms. While investment levels can be volatile, reflecting broader economic trends, the overall trajectory has been one of explosive growth. Between 2012 and 2021, total annual private investment in the space sector grew from around $300 million to over $10 billion. In 2022 alone, over 400 unique investors participated in space startup financing, with more than half of them being new to the sector.

This flood of capital is driven by a powerful investor FOMO. The sheer scale of the market’s projected growth – to over $1 trillion by the 2040s – has created an intense fear of missing out on what could be the next great technological and economic revolution. VCs are in a race to find and fund the next SpaceX, a generational company capable of delivering returns of 10 to 15 times their initial investment, or even more. This potential for outsized returns leads many investors to overlook or downplay the immense risks inherent in the space industry: high capital intensity, extremely long development timelines, and the ever-present possibility of catastrophic technical failure.

The recent boom in space companies going public via Special Purpose Acquisition Companies (SPACs) is a clear symptom of this FOMO-driven investment climate. The SPAC process offered a faster, less scrutinized path to public markets, allowing startups to capitalize on investor enthusiasm. This frenzy of space SPACs, which saw companies with little to no revenue achieve multi-billion-dollar valuations, closely echoes the Initial Public Offering (IPO) mania of the dot-com era. It is a classic sign of a market where the fear of missing out on future growth has become a more powerful motivator than a objective assessment of current fundamentals.

The Retail Investor’s Gaze to the Stars

The excitement surrounding the New Space economy has also captured the imagination of the public, leading to a surge of interest from individual, or retail, investors. This enthusiasm is fueled by constant media coverage of rocket launches, billionaire space flights, and ambitious plans for Mars colonization. Charismatic figures like Elon Musk and Jeff Bezos have become celebrities, and their companies, SpaceX and Blue Origin, have developed a powerful public allure.

This has created another layer of FOMO, this time at the individual level. Just as in the dot-com bubble, stories of a new, exciting industry on the verge of explosive growth create a fear of being left on the sidelines. The availability of space-themed Exchange-Traded Funds (ETFs) has made it easier than ever for retail investors to gain exposure to the sector, allowing them to buy into a diversified portfolio of space-related stocks. This accessibility, combined with compelling narratives of a new frontier, creates a powerful draw for those who fear missing the chance to invest in “the next big thing.” This retail participation adds to the market’s momentum, further inflating valuations and reinforcing the sense that space is a can’t-miss opportunity.

Echoes of the Past, Projections for the Future

The dynamics currently at play in the modern space economy bear a striking resemblance to the historical manias of the past. A powerful and transformative technology narrative – that of humanity becoming a multi-planetary species and unlocking a trillion-dollar orbital economy – is driving excitement and investment. As in the dot-com era, this narrative encourages the dismissal of traditional risk metrics in the face of massive long-term growth projections. The influx of speculative capital from both venture funds and retail investors, amplified by intense media coverage and the actions of high-profile figures, creates a self-reinforcing cycle of hype and rising valuations.

This raises a critical question: Is the space economy a sustainable technological revolution, or is it a FOMO-inflated bubble destined for a painful correction? The most likely answer is that it is both. There is no doubt that a fundamental and permanent economic shift is occurring. The cost of access to space is plummeting, and the capabilities of space-based infrastructure are expanding at an incredible rate. This is a real and durable revolution. However, the pace and scale of investment being poured into the sector, driven by the multi-layered FOMO of nations, VCs, and the public, are likely accelerating this growth to potentially unsustainable levels.

A telling indicator of this underpricing of risk can be found in the satellite insurance market. Despite the inherent dangers of launch and orbital operations, and the growing threat of space debris, only about one-third of global launches are insured. More strikingly, only about 1% of the thousands of operational satellites in Low Earth Orbit are insured. This suggests a market-wide complacency, a collective belief that the potential for upside is so great that the significant risks can be discounted. This is a classic symptom of a market environment where the Fear of Missing Out has overshadowed the fear of loss.

Deeper Analysis: A Unique FOMO Trifecta

The modern space economy is an unprecedented phenomenon because it represents a unique convergence where FOMO is operating simultaneously and synergistically at three distinct levels of human organization. This “FOMO Trifecta” creates a powerful feedback loop that is unlike anything seen in previous speculative manias.

The first level is geopolitical. Nations, driven by a fear of being strategically, economically, and militarily eclipsed by their rivals, are pouring vast public resources into their space programs. This is a FOMO of national relevance and security, a high-stakes competition for control of the ultimate frontier.

The second level is institutional. Venture capitalists, private equity firms, and other large investors are driven by the fear of missing out on what they believe will be the next trillion-dollar industry. They are chasing generational returns, and this financial FOMO leads them to make high-risk bets on unproven technologies and business models.

The third level is individual. Retail investors and the general public are captivated by the powerful narrative of a new space age. They are drawn in by the celebrity of billionaire pioneers and the promise of participating in a historic human endeavor. This is a FOMO of personal wealth and cultural participation, a desire not to be left out of the next great chapter of the human story.

These three layers are not independent; they actively reinforce one another. Government contracts and investments from the geopolitical level serve to de-risk the industry for institutional investors at the second level. The success of VC-backed companies and the resulting media hype generated at the institutional level then attract the attention and capital of retail investors at the third level. Finally, the public excitement and the perception of a global “race” created at the individual level generate political pressure for even more government funding and support, completing the loop back to the first level. This powerful, multi-layered engine of investment, ambition, and activity makes the space economy uniquely susceptible to the dynamics of collective FOMO, and it is this force that is currently shaping the trajectory of humanity’s expansion into the cosmos.

Summary

The Fear of Missing Out, far from being a superficial artifact of the digital age, is a significant psychological force with deep roots in the human condition. It stems from our most fundamental needs for social connection and our innate tendency to measure our own lives against the lives of others. This powerful social anxiety has proven capable of shaping human behavior on a massive scale, acting as a key, though often unacknowledged, driver of the great economic manias of history. The same collective fear of being left behind that fueled the speculative frenzy of the Dutch Tulip Craze and propelled the explosive growth and subsequent collapse of the dot-com bubble is not a relic of the past.

Today, this same psychological driver is manifesting at an unprecedented scale and complexity in the modern space economy. It is a unique arena where the Fear of Missing Out is operating on three synergistic levels simultaneously. It is shaping the strategic calculations of world leaders engaged in a new geopolitical space race. It is driving the high-stakes decisions of institutional investors pouring billions into the search for the next generational company. And it is capturing the imagination of individual citizens, who fear being excluded from the next great frontier of human endeavor. The gravity of this collective absence – the fear of what might be missed – is a powerful and unpredictable force, one that is now defining the trajectory of our species’ journey into the final frontier.

Last update on 2025-12-20 / Affiliate links / Images from Amazon Product Advertising API