Cryptocurrency users who also gamble tend to be more mentally involved compared to their non-gambling counterparts, according to new research published in Computers in Human Behavior. The new study provides insight into some of the psychological patterns that characterize heavy cryptocurrency users.
Cryptocurrency is a digital asset designed to work as a medium of exchange that uses strong cryptography to secure financial transactions, control the creation of additional units, and verify the transfer of assets. Bitcoin, the first and most well-known cryptocurrency, was created in 2009. Since then, cryptocurrencies have become increasingly popular. But prices can fluctuate rapidly and investing in cryptocurrencies involves substantial risk.
The risk-taking aspect of cryptocurrencies has led researchers to examine the potential link between cryptocurrency trading and problem gambling. Study author Fred Steinmetz noted that trust in cryptocurrency and ideological motivation might play a substantial role in the use of cryptocurrency. Furthermore, little is known about cryptocurrency users who also gamble
Since the beginning of my research journey in 2015, my research topics included blockchain technology, cryptocurrency, and gambling. It was only logical for me to start investigating the intersections between these topics, said study author Fred Steinmetz, co-founder of the non-profit Blockchain Research Lab and author of Blockchain and the Digital Economy: The Socio-Economic Impact of Blockchain Technology.
For his study, Steinmetz analyzed a representative sample of 3,864 Germans regarding their use of cryptocurrency and engagement in gambling over the past year. The data was collected in 2019.
The participants were categorized into four separate groups: there were 1,844 non-users (who neither gambled nor ever used cryptocurrency), there were 1,312 gamblers (who had gambled recently but never owned cryptocurrency), there were 708 crypto-users (who at some point owned cryptocurrency but had not gambled recently), and there were 435 crypto-gamblers (who at some point owned cryptocurrency and had also gambled recently).
Crypto-gamblers reported having significantly higher levels of knowledge about blockchain technology along with higher levels of trust in cryptocurrency. Crypto-gamblers were also much more likely, compared to regular crypto-users, to consider their ownership of cryptocurrency to be ideologically motivated.
Cryptocurrency is not only about trading alternative financial assets. In differentiation to, e.g. trading stocks, cryptocurrency users experience a different mental involvement, which relate to the narratives and ideologies which permeate the industry, Steinmetz told PsyPost. Cryptocurrency users with gambling affinity are more involved mentally, proactively and financially than non-gambling users.
In addition, crypto-gamblers tended to be younger, more likely to be male, better educated, and better off financially than non-gambling crypto-users. The profiles of crypto-gamblers resemble those of skill-based gamblers and stock traders but differ in terms of their average young age, Steinmetz wrote in his study.
The crypto-gamblers were further broken down into three distinct clusters. One cluster consisted of those with high ideological motivation and trust toward cryptocurrency and a moderate level of financial investment who used their cryptocurrency for the purpose of speculating relatively infrequently. The second cluster had high ideological motivation and trust, a high level of investment, and frequently engaged in cryptocurrency speculation. The third cluster consisted of crypto-gamblers with low ideological motivation and trust, low levels of investment, and low levels of cryptocurrency speculation.
Among crypto-users who also gamble, I identified a group which comprises the heavy users, who are highly engaged and potentially consider cryptocurrency and gambling substitutes, Steinmetz told PsyPost. The interrelations among the investigated variables suggest that high levels of mental involvement among crypto-users who also gamble induces higher engagement in terms of owning more cryptocurrencies and speculating more often.
The second cluster of heavy users accounted for a sizable share of crypto-gamblers. A ~35% share of heavy users among all cryptocurrency users who also gamble was not expected. This warrants further research on the domain, Steinmetz said.
The results suggest that rather than focusing solely on trading frequencies of cryptocurrency, researchers should broaden their scope by recognizing the importance of mental involvement of cryptocurrency users, e.g. trust-perceptions, proclaimed knowledge about cryptocurrency and ideological motivation, the researcher said.
The study, The interrelations of cryptocurrency and gambling: Results from a representative survey, was published online on August 22, 2022.
- Nexus Of Mathematics, Cryptography, Blockchain Will Redefine Technological Innovation Expert - New Telegraph Newspaper - May 15th, 2024
- What is the purpose of post-quantum cryptography? - Security Boulevard - March 21st, 2024
- Quantum Computing and Networking Poised to Revolutionize Cryptography - BroadbandBreakfast.com - March 21st, 2024
- TM Technologies and Quantum Resistant Cryptography Team Up to Increase Speed and Security of 5G/6G, Satellite ... - Yahoo Finance UK - March 5th, 2024
- Cryptology | Definition, Examples, History, & Facts | Britannica - February 1st, 2024
- What Is Moore's Law, And How Does It Impact Cryptography? - Blockchain Magazine - January 24th, 2024
- Cryptography 101: Key Principles, Major Types, Use Cases ... - Splunk - December 11th, 2023
- Federal agencies take 'most important' first step with inventorying cryptography ahead of quantum migration, OMB ... - FedScoop - December 11th, 2023
- What is Cryptography? - Cryptography Explained - AWS - January 30th, 2023
- What is Cryptography? Definition, Importance, Types | Fortinet - January 22nd, 2023
- What is cryptography? How algorithms keep information secret and ... - CSO - January 22nd, 2023
- What is Cryptography? Definition from SearchSecurity - January 22nd, 2023
- System.Security.Cryptography.CryptographicException: The payload was ... - December 28th, 2022
- NIST Action Will Heat Up Post-Quantum Cryptography Market: Report - TechNewsWorld - December 12th, 2022
- Global Encryption Day: Why quantum-safe cryptography is the future of cybersecurity - World Economic Forum - October 23rd, 2022
- Post-Quantum Cryptography: Anticipating Threats and Preparing the Future - ENISA - October 23rd, 2022
- Cracking the code of cryptography and life The Irish Times - The Irish Times - October 15th, 2022
- Dutch influence standards for post-quantum cryptography - ComputerWeekly.com - October 15th, 2022
- Castle Shield Holdings, LLC Updates the Post-Quantum Cryptography (PQC) Algorithms for Its Data-in-Motion Aeolus VPN Solution - Business Wire - October 15th, 2022
- Yale increases investment in blockchain research - Yale Daily News - October 15th, 2022
- OPPO joins the FIDO Alliance, accelerating the arrival of a new era of passwordless sign-ins - Yahoo Finance - October 15th, 2022
- It's Time To Trust Crypto. Here's Why. - Entrepreneur - October 15th, 2022
- Algorand (ALGO) on its journey to breach the $0.4 mark! - CryptoNewsZ - October 15th, 2022
- Crypto Hackers Gross Over $3 Billion From 125 Hacks so Far This Year Featured Bitcoin News - Bitcoin News - October 15th, 2022
- Bitt and IDEMIA: Winners of the G20 Central Bank Digital Currency TechSprint 2022 - Yahoo Finance - October 15th, 2022
- White House Releases First-Ever Comprehensive Framework for Responsible Development of Digital Assets - Lexology - October 15th, 2022
- The Web3 Foundation taps edX for free courses on blockchain and Polkadot - Cointelegraph - October 15th, 2022
- CoinGeek Weekly Livestream: Jad Wahab and Marcin Zarakowski discuss honest nodes and their role in Bitcoin - CoinGeek - October 15th, 2022
- What Is Cryptography? Definition & How It Works | Okta - October 7th, 2022
- What Is Cryptography in Cyber Security: Types, Examples & More - October 7th, 2022
- Decentralized Identifiers (DIDs) is Officially an Internet Standard, Says The World Wide Web Consortium (W3C) - bitcoinke.io - October 7th, 2022
- Cloudflares post-quantum cryptography protects almost a fifth of the internet - VentureBeat - October 7th, 2022
- Nobel Prize in Physics goes to scientists who paved the way for quantum computing - Space.com - October 7th, 2022
- The 2nd Annual Encryption Consulting Conference is Back! - PR Newswire - October 7th, 2022
- Quantum Computing And The Threat Posed To Bitcoin - The Dales Report - October 7th, 2022
- Cardano (ADA) and Algorand (ALGO) Are Two Blockchains To Watch Next Bull Cycle, Says Coin Bureau Here?... - The Daily Hodl - October 7th, 2022
- The Guardian view on the Rosetta Stone: a monument to code-breaking - The Guardian - October 7th, 2022
- Still think everything is awful? Here are three reasons for hope - Colorado Newsline - October 7th, 2022
- Sleep Disorders And Quantum Cryptography Win Big At The Breakthrough Prizes 2023 - IFLScience - September 29th, 2022
- Lecturer in Cryptography job with KINGS COLLEGE LONDON | 310005 - Times Higher Education - September 29th, 2022
- Microsoft venture fund M12 invests millions in advancing cryptography and 'smart contracts' - OnMSFT.com - September 29th, 2022
- Sectigo's Chief Strategy Officer and CISO Advisor David Mahdi Accepted To Fast Company Executive Board - StreetInsider.com - September 29th, 2022
- Fundamental Cryptography in Theory and Python - iProgrammer - September 21st, 2022
- Web Crypto API - Web APIs | MDN - Mozilla - September 21st, 2022
- Cryptomathic appoints Laurent Lafargue as CEO of the pioneer in cryptography - FinanceFeeds - September 21st, 2022
- Blockchain and POW are the leading technology behind Bitcoin. - Deadline News - September 21st, 2022
- NTT Research Names Takashi Goto Head of the Technology Promotion Team - Business Wire - September 21st, 2022
- Investigating the Use of Blockchain to Authenticate Data from the Statistics Canada Website - Statistique Canada - September 21st, 2022
- 6 Technological Innovations in the New York Sports Betting Industry - Qrius - September 21st, 2022
- EMVCo reports on the future of contactless payments - NFC World - September 13th, 2022
- Quantum eMotion to Present at the H.C. Wainwright 24th Annual Global Investment Conference in New York - Digital Journal - September 13th, 2022
- The emerging role of cybersecurity in the automotive sector - The Financial Express - September 13th, 2022
- Jack Dorseys Web5 is a solution to a problem thats already been solved - VentureBeat - September 5th, 2022
- What is Cryptography in security? What are the different types of ... - September 5th, 2022
- RKVST Launches RKVST Free and RKVST Team SaaS Supply Chain Integrity, Transparency and Trust Solution - Business Wire - September 5th, 2022
- The United States Is Behind the Curve on Blockchain - War on the Rocks - September 5th, 2022
- $3.7 Billion Worldwide Blockchain in Retail Industry to 2027 - Featuring Cognizant, Infosys and Oracle Among Others - ResearchAndMarkets.com -... - September 5th, 2022
- Research Fellow in Applied Cryptography And Data Security job with UNIVERSITY OF SURREY | 306274 - Times Higher Education - August 28th, 2022
- ASPG, Inc. Announces Release of CryptoZ, Innovative New z/OS Cryptography Reporting and Administration Sy - Benzinga - August 28th, 2022
- UN: monitoring the use of cryptography can make the Internet safer - The Cryptonomist - August 20th, 2022
- Keyfactor Named to the 2022 Inc. 5000 List for Third Consecutive Year and Recognized as the Fastest Growing PKI and Cryptography Leader in America -... - August 20th, 2022
- Cryptography 101: Giving a framework to the brimming blockchain businesses of India - Times of India - August 20th, 2022
- Godfather of Crypto expresses concerns over current state of blockchain privacy - CryptoSlate - August 20th, 2022
- Nine Benefits of FIDO Authentication | HYPR - Security Boulevard - August 20th, 2022
- Now That Authorities Have Sanctioned Tornado Cash, Is Bitcoin Next? - Bitcoin Magazine - August 20th, 2022
- Meet the world's first carbon-negative blockchain - wknd. - August 20th, 2022
- 'FutureFi': Crypto is transforming the green finance universe | Greenbiz - GreenBiz - August 20th, 2022
- Philippine Regulator Warns the Public of Engaging With Foreign Crypto Service Providers Regulation Bitcoin News - Bitcoin News - August 20th, 2022
- What Is Cryptography: Definition and Common Cryptography Techniques - August 12th, 2022
- What is Cryptography? Types of Algorithms & How Does It Work? - August 12th, 2022
- What is Cryptography? - Kaspersky - August 12th, 2022
- Former Google CEO: Bitcoin is a remarkable achievement of cryptography - The Cryptonomist - August 12th, 2022
- Protect your privacy with cybersecurity and cryptography - Geeky Gadgets - August 12th, 2022
- Saving Private Keys From The Courts - Bitcoin Magazine - August 12th, 2022
- NTT Research and NTT Corporation Engage in Breakthrough Research at Crypto 2022 - Business Wire - August 12th, 2022
- Can WhatsApp messages be secure and encryptedbut traceable at the same time? - EurekAlert - August 12th, 2022
- Why 2023 is the year of passwordless authentication - TechTarget - August 12th, 2022
- Sony unveils a new way to protect images from theft, manipulation - Popular Photography - August 12th, 2022
- Cameron Whitehead wins again, taking top honors in the CyberForce Program's Conquer the Hill Reign Edition Competition - EurekAlert - August 12th, 2022
- Criminals steal $4 million from Solana as theft trend hits its crypto blockchain - SC Media - August 12th, 2022