Why cryptocurrency trading appeals to problem gamblers
There appears to be a link between frequently trading cryptocurrencies like bitcoin and problem gambling.
In the first of study of its kind, researchers at the Center for Gambling Studies at Rutgers University–New Brunswick found crypto trading appeals to people struggling to manage their gambling addiction. The study found it provides a similar rush to other types of gambling, such as sports betting, daily fantasy sports, scratch-offs, and high-risk stock trading.
More than 50 per cent of regular gamblers — those gambling at least monthly — have traded cryptos in the past year. More than 75 per cent of high-risk stock traders also trades cryptos. Gamblers trading both reported higher problem gambling and greater depression and anxiety symptoms
“People who trade cryptos look very much like those who trade high-risk stocks such as margins and options, “said Lia Nower, director of the Center for Gambling Studies who co-authored the study.
“Therefore, those who like risky stocks are also more likely to jump into the cryptocurrency trading market compared to those who, for example, invest in stocks over the long term.”
The study included 876 adults who had gambled at least monthly in the past year. The research appears in the journal Addictive Behaviors. Devin Mills, the study’s lead author, says crypto trading can be dangerous.
“For some people, trading cryptocurrency is seen as an investment opportunity. But there is an alarming proportion of people who are ‘gambling’ on these cryptocurrency markets as they would gamble on horses or sports or slots. And it has the potential to get them into significant trouble.” said Mills.
Mills says cryptocurrency trading is similar to other forms of gambling with some key differences that could make it even problematic. It is anonymous and unregulated. It’s also available 24/7 unlike stock trading which only occurs during set hours and only on weekdays.
Bitcoin (BTC-CAD), the most popular cryptocurrency, has lost more than 80 per cent of its value since it peaked in December 2017.
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