New Rutgers Bitcoin Study: Cryptocurrency Trading is a Problem for Regular Gamblers
When it comes to cryptocurrency, the volatility of the market leaves some investors nervous, leading them to hold their crypto assets instead of trading and spending them. However, the industry thrives on these volumes, often pushing up the price of various tokens.
According to Rutgers University's recent cryptocurrency trading study, the traders during these times are usually the ones with a bad habit of gambling.
This new data covered 876 adults, and it revealed that over 50% of those surveyed have been involved in the trading of cryptocurrency in the last year. Including details about high-risk stock traders, the study showed that this group had 75% involvement in trading cryptocurrencies.
Piecing these details together, the researchers suggested that the high volume of trading was due to both impulsivity and thinking they can outsmart the market.
Lead author of the study, Devin Mills, said that there are many people who see an investment opportunity in trading cryptocurrency. However, there is an unfortunately high number of people treating the cryptocurrency community like a long-term stay at a casino, effectively “gambling” on the markets in the same way that they would during a good Blackjack hand.
While there could be some success, there is a big chance of these habits leading to serious personal troubles.
The study adds that the individuals who had traded both crypto and high-risk stocks also reported symptoms of anxiety, problem gathering, and even depression, all on a greater scale than gamblers only involved in one of these types of trading.
Clearly, there is a major correlation between a gambling addition and intensive crypto trading, but that study would ultimately need to be led by mental health professionals and other researchers. Still, the conclusion is not surprising or even new.
The volatility of the market, while discouraging for more responsible and reserved investors, is most likely part of the appeal that attracts these gambling addicts, who are most likely looking for a fast money reward. Furthermore, the anonymity and the ability to participate without even leaving home just make for a greater reason that these gambling addict get involved.
The Hard Fork wrote a report about a crypto addiction center located in Scotland, established for the correlation that cryptocurrency trading has to addictive gamblers. These crypto addicts exhibited the same symptoms and behavior of gambling addicts, in that they continued to trade despite horrendous losses.
There are several signs to look out for that have been linked to crypto trading addictions, according to the facility. Those signs include:
- Spending a lot of time on crypto trading to the point of inhibiting normal life routines
- Debt and financial difficulties
- Constant lies to loved ones about their trading
- Mood swings
- Anxiety, which can lead to sweating tremors
- Unrealistic feelings of grandeur and luck
If there is a chance that you or someone you know is battling any kind of addition, seeking professional help in in your/their best interest.