There may be connections between cryptocurrency ownership and particular personality traits and behaviors, according to a recent study by researchers at the Universities of Toronto and Miami.
The study sought to investigate the connections between cryptocurrency ownership and different psychological, political, and social traits. It polled 2,001 American adults in 2022.
The survey’s finding that 30% of participants owned cryptocurrencies reflects the rise in popularity of digital assets over the past few years. The “dark tetrad” of personality traits—narcissism, psychopathy, sadism, and Machiavellianism—was linked to cryptocurrency ownership, according to analysis.
The researchers advised caution in interpreting these findings, emphasizing that they do not apply to all cryptocurrency users.
One of the most reliable indicators of cryptocurrency ownership found in the study was male gender. Owning cryptocurrencies was also associated with a propensity for argumentation, a dislike of authoritarianism, and reliance on alternative or fringe social media as a main news source.
The commonly held belief that the crypto community is primarily male and has anti-establishment views is supported by these findings. The study also discovered associations between holding cryptocurrency and conspiracy theory belief, which may surprise some in the conventional financial community.
When asked what motivated them, 30.22% of respondents who owned cryptocurrencies said they “wanted others to admire” them, and 23.57% said they were motivated by a desire for status or prestige. These responses suggest that there are social factors other than money that may motivate some people to invest in cryptocurrencies.
The results were especially striking on measures of psychopathy. 14.55% of cryptocurrency owners stated they “lack remorse,” 15.80% said they are “unconcerned with the morality of their actions,” and 16.25% said they are “callous or insensitive.”
There may be a tendency toward verbal aggression or manipulation as 46.95% of respondents stated they “know how to hurt someone with words alone.”
The correlations were generally found to be small, the researchers noted. They said, Although their findings may not be applicable to all cryptocurrency users, on the whole, they discovered that cryptocurrency ownership and investment tends to attract individuals who are more contentious, anti-authoritarian, and prefer to obtain their news from non-mainstream social media platforms.
The study’s conclusions have generated discussion among academics and cryptocurrency enthusiasts alike. Certain experts have questioned why investors in cryptocurrencies are the focus of attention.
Professor of Finance Andrew Urquhart of the University of Birmingham said:
“I wouldn’t characterize holders of silver or gold as psychopaths.”
He pointed out that one basic idea covered in finance classes is that investing in cryptocurrencies might just be a component of a diversified portfolio strategy.
Additionally, Urquhart noted that the COVID-19 pandemic led to a spike in the use of cryptocurrencies, especially among American youth who were recipients of stimulus payments.
To trade and invest in cryptocurrencies, many people used apps like Robinhood. As a result, the app crashed several times between 2020 and 2021 due to the overwhelming demand.
The study revealed that participants tended to be more liberal in their political views and more likely to identify as Democrats, despite the fact that many crypto enthusiasts are known for having libertarian inclinations.
The researchers did, however, issue a warning, noting that these correlations were weak and might not point to a clear-cut political trend among cryptocurrency owners.
The authors of the study urged more investigation to gain a deeper understanding of the behavioral and psychological aspects of cryptocurrency adoption and use.
They recommended looking into global trends in populism and mistrust of institutions as possible areas of interest.
The researchers observed, using economic instability as an example, that “established authorities are under attack in this era, be they political institutions or financial markets—both can lead to negative externalities.”
The findings should not be interpreted too broadly or used to generalize about all cryptocurrency investors, the researchers advised. One of the study’s authors, Steve Littrell, used social media to dispute claims that the research showed cryptocurrency owners are psychopaths, saying that these claims “aggressively misrepresent our paper’s results.”
With an estimated five million adults in the UK alone having invested, the cryptocurrency market, which is currently valued at around £1.3 trillion globally, has experienced explosive growth in recent years.
Regulators, financial institutions, and now, it seems, psychologists are paying more attention to this quick expansion.
