A recent study published by four researchers from Tampere University in Finland, shows how much the trading of cryptocurrencies can be harmful to mental health.
Why is cryptocurrency trading so addictive?
While many believe that cryptocurrencies can make you rich, according to therapists, more people have become depressed and addicted. In this study, the researchers take several examples of American youth who have engaged in “crypto trading” At the beginning of the cryptocurrency boom. Since 2017, Joanna Garzilli, a Californian eager for new adventures, decided to start trading crypto currencies.
It started by making a few big moves, including one where it took $85,000 from a cryptocurrency called GRT, sparking dreams of living in luxury homes. But soon, her trades became reckless. Garzilli invested 90% of his savings in a cryptocurrency that caused him to lose tens of thousands of dollars in a few days. Her nights became dark. She explains that “cryptocurrency can bring out the darkest parts of ourselves if we have an addictive personality. I have a very addictive personality.”.
Price spikes and drops provide a level of excitement that is difficult to replicate through the more volatile stocks and bonds. The highly volatile nature of cryptocurrencies can reduce profits to zero in the blink of an eye, leaving investors with mountains of debt, broken relationships and suicidal thoughts, according to researchers. Many U.S. therapists are seeing an influx of people seeking help to heal from cryptocurrency addiction.
Buying crypto assets and impaired mental health
Over the past decade, cryptocurrency trading has gone from being a curiosity to a central part of financial markets and popular culture, their market value soared from $5.4 billion to $1.8 trillion. Many celebrities promote trading sites. Matt Damon, the Tampa Bay Buccaneers quarterback, Tom Brady and his wife, Gisele Bündchen and influencers on YouTube, TikTok, Instagram and Twitter showcase their luxurious lives.
According to the researchers’ study, cryptocurrencies have characteristics that make them more prone to addiction than sports betting, gambling and traditional financial investments. Cryptocurrencies can be traded 24 hours a day Unlike most stocks. People don’t have to go to a casino to invest. The price volatility of cryptocurrencies can be fast and provide the brain with a quick sense of reward.
While more research is still being done, several studies document links between cryptocurrency trading and addiction. The team of Finnish researchers found that cryptocurrency traders also exhibited High rates of addiction to gambling, video games and the Internet in general.. They also have higher levels of psychological distress and loneliness compared to traditional traders.
.
