Are Crypto Owners More Likely to Have a Dark Side? New Study Investigates

TLDR:

• 30% of surveyed Americans owned cryptocurrency
• Crypto ownership linked to “dark tetrad” personality traits like narcissism and psychopathy
• Crypto owners more likely to be male and use fringe social media
• Study found correlation with belief in conspiracy theories
• Researchers caution against overgeneralizing results to all crypto owners

A recent study conducted by researchers at the University of Toronto and University of Miami has shed light on potential correlations between cryptocurrency ownership and certain personality traits and behaviors.

The study, which surveyed 2,001 American adults in 2022, aimed to examine relationships between crypto ownership and various psychological, political, and social characteristics.

The survey revealed that 30% of respondents owned cryptocurrency, reflecting the growing popularity of digital assets in recent years.

Analysis showed crypto ownership was associated with traits from the “dark tetrad” of personality – narcissism, Machiavellianism, psychopathy, and sadism.

However, the researchers emphasized these results do not apply to all crypto users and urged caution in interpretation.

Being male emerged as one of the strongest predictors of crypto ownership identified in the study. Other factors correlated with owning cryptocurrency included relying on alternative or fringe social media as a primary news source, tendency toward argumentativeness, and aversion to authoritarianism.

These findings align with the often-cited perception of the crypto community as being predominantly male and harboring anti-establishment sentiments.

The study also found links between crypto ownership and belief in conspiracy theories, a connection that may raise eyebrows in traditional financial circles.

When asked about motivations, 30.22% of crypto-owning respondents said they “wanted others to admire” them and 23.57% sought prestige or status, suggesting that for some, cryptocurrency investment may be driven by social factors beyond purely financial considerations.

On measures of psychopathy, the results were particularly striking. 15.80% of crypto owners surveyed said they tended to be “unconcerned with the morality of their actions,” 14.55% said they “lack remorse,” and 16.25% described themselves as “callous or insensitive.”

46.95% of respondents claimed they “know how to hurt someone with words alone,” indicating a potential tendency towards verbal aggression or manipulation.

However, the researchers noted that the correlations found were generally small. They stated:

“Though our results certainly do not apply to every crypto user out there, on average, we found that crypto investment and ownership tends to appeal to people who are more argumentative, anti-authoritarian, and prefer to get their news from non-mainstream social media sites.”

The study’s findings have sparked debate within both academic and cryptocurrency circles. Some experts have questioned the focus on cryptocurrency investors specifically.

Andrew Urquhart, Professor of Finance at the University of Birmingham, commented:

“I wouldn’t say that people who hold gold or silver are psychopaths.”

He noted that investing in crypto could simply be part of a diversified portfolio strategy, a fundamental principle taught in finance courses.

Urquhart also pointed out that cryptocurrency adoption surged during the COVID-19 pandemic, particularly among young people in the United States who received stimulus checks.

Many turned to apps like Robinhood to trade and invest in cryptocurrency, leading to such high demand that the app experienced crashes between 2020 and 2021.

While many crypto enthusiasts are known for their libertarian leanings, the study found that participants tended to be more liberal in their political views and more likely to identify as Democrats.

However, the researchers warned that these correlations were small and may not indicate a strong or consistent political pattern among crypto owners.

The study’s authors called for further research to better understand the psychological and behavioral factors associated with cryptocurrency adoption and use.

They suggested examining global trends in distrust of institutions and populism as potentially relevant areas for investigation.

“We are in an era where established authorities are under attack, be they political institutions or financial markets—both can lead to negative externalities,” the researchers noted, citing economic instability as an example.

The researchers cautioned against overgeneralizing the findings or using them to make blanket statements about all cryptocurrency investors. Steve Littrell, one of the study’s authors, took to social media to refute claims that the study concluded crypto holders are psychopaths, stating that such assertions “aggressively misrepresent our paper’s results.”

This person claims to be an academic but is aggressively misrepresenting our paper’s results to his over 700K followers. Sad to see a supposed scholar spread rage-baiting misinformation about legitimate scientific research. https://t.co/pMVs9wUxR8

— Shane Littrell, PhD 🧠 (@MetacogniShane) August 27, 2024

The cryptocurrency market, currently valued at about £1.3 trillion globally, has seen explosive growth in recent years, with an estimated five million adults in the UK alone having invested.

This rapid expansion has brought increased scrutiny from regulators, financial institutions, and now, apparently, psychologists.