Cryptocurrency trading could be linked to problem gambling, anxiety and depression in young men, research from the University of Queensland has found.
UQ’s research student Ben Johnson National Center for Research on Juvenile Substance Use (NCYSUR) reviewed existing studies on cryptocurrency trading and its association with gambling and mental health.
“We found that there were strong similarities in the behaviors of cryptocurrency traders and problem gamblers, such as spending excessive amounts of time reviewing trades, spending more to recoup losses, borrowing money, impulsiveness and novelty seeking,” Johnson said.
“The research also showed that it was typically young men, who tend to take financial risks, who were attracted to cryptocurrency trading.
“Cryptocurrency prices they regularly fall by more than 50 percent, putting investors at risk of sudden and dramatic financial losses.
“This could be related to adverse mental health, with some traders reporting anxiety, depression, psychological distress and loneliness.”
Cryptocurrencies are digital assets that are traded online on markets that never close, and often with mobile phone apps that enable continuous, remote trading.
Merchants spent an average of 2.3 hours a day on the activity and participated in other forms of gambling, such as sports betting or card games.
NCYSUR researcher Dr Daniel Stjepanovic he said it was important for young people to understand the link between cryptocurrency trading and problem gambling.
“Cryptocurrency trading has a huge social media presence, which may contribute to its popularity among young people,” said Dr. Stjepanovic.
“It is important for people to be aware that there is an association between cryptocurrencies and problem gambling so that they can make informed decisions.
“Despite the great risks involved with cryptocurrency trading, research into potential mental health impacts is currently lacking.
“Our research has highlighted the need for more research into the potential harm activity can have on a person’s relationships and employment.”
The research is published in addictive behaviors.
