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Recent research suggests that crypto investors may display lower levels of factors associated with analytic thinking. But is this true?
Study Insights on Crypto Investors
A new scientific study exploring the types of people who own crypto has been released, and it presents some intriguing findings. Researchers claim they’ve found a correlation between investing in digital assets and showing signs of narcissism, psychopathy, and sadism.
“Cryptobros” are also more likely to be argumentative, believe in conspiracy theories, and rely on fringe social networks for their news.
About 2,000 American adults participated in the study, with roughly 30% confirming they had bought or sold cryptocurrencies in the past.
Bitcoin’s Origins and Investor Characteristics
Academics noted that Bitcoin was created amid a strong distrust for mainstream currencies and financial institutions, launched right after a global recession. They argued:
“A distrust of institutions and mainstream authorities is also strongly associated with characteristics such as conspiracy thinking, anti-science attitudes, the ‘need for chaos,’ and non-mainstream political orientations.”
One controversial hypothesis suggests that those who invest in Bitcoin “display lower levels of factors associated with analytic thinking.” Additionally, the study states:
“People who invest in cryptocurrencies report experiencing higher levels of perceived anxiety, depression, impulsivity, loneliness, mood disorders, and stress compared to those who do not.”
The Stress of Crypto Investing
This point is particularly interesting. Crypto investing can be stressful, with sudden bouts of volatility causing anxiety and impulsive behavior. Given that the crypto space rarely discusses mental health, traders may feel isolated while dealing with losses.
News Sources and Demographics
The study also found that crypto owners tend to get their news from “alternative social media sources” such as Telegram, Reddit, and Truth Social. This isn’t surprising, considering the limited discussion about digital assets in traditional media outlets.
Researchers described the typical digital asset investor as:
“More likely to be male or male-identifying, have somewhat higher income, and feel victimized by a life they perceive as unfair.”
The study was conducted by Shane Littrell, Casey Klofstad, and Joseph Uscinski from the Universities of Toronto and Miami. They emphasized the need for further research to determine if these correlations are coincidental and to explore the motivations behind crypto investments.
Limitations of the Research
This research has some limitations. Conducted in 2022, it may not fully reflect the current political climate, especially with recent developments in the U.S. However, one clear conclusion is that investors aren’t necessarily linked to a specific political ideology.
“Crypto purchasers, on average, share an eclectic mix of political attitudes, identities, and predispositions. This finding contrasts with past claims that cryptocurrencies are a financial tool of the ‘far-right.’”
This study doesn’t fully capture why people globally invest in crypto. From Latin American consumers seeking safe havens against hyperinflationary currencies to those displaced by global conflicts looking to protect their wealth, crypto investors are diverse.
It’s challenging to generalize about someone with a small allocation of Bitcoin for the long term and a trader focused on memecoins. While the crypto community shares passions for freedom, financial inclusion, and privacy, it is diverse and full of differences.
For more updates and news on cryptocurrencies, investing, and finance, explore Global Crypto News.
