This Q&A includes Dr Jeremiah Weinstock’s entire interview. This article contains contributions from all panelists and provides an in-depth look into cryptocurrency trading addiction.
Below is a conversation with Dr. Jeremiah Weinstock. He is a Professor at Saint Louis University’s Psychology Department. His research is focused on addiction with a particular focus on intervention and gambling disorder. The complete transcript of the interview is available here. It was also used in the main cryptocurrency trading article.
This link will take you deep into the subject of cryptocurrency trading addiction, and how it relates to gambling. Click below to view Dr Weinstock’s entire interview.
CoinJournal (CJ), Do gambling addiction and crypto trading addiction have any similarities? Can you name the most famous?
Crypto trading addiction is not a psychiatric disorder, but it can pose a serious problem to some who trade in crypto.
Gambling disorder and other addictions share three main characteristics: (1) Loss of control. The person attempts to quit gambling but fails. To achieve the desired effect, the person must engage in the behavior with a greater intensity. When trying to reduce or stop, one feels angry and moody.
These are all signs that crypto trading can lead to addiction. If traders are addicted to trading or have high tolerance for thrills, this behavior is more likely to be maladaptive.
CJ: What makes trading so addictive?
Crypto markets are volatile and uncertain. These markets provide a “possibility to make quick cash.” It is more common to become addicted to crypto trading if you win a large win early.
CJ: What do YOU think of influencers who promote crypto to their followers in return for a fee? Are these dangerous?
As the public is well aware, influencers aren’t a problem as they aim to monetize every topic they promote or highlight. Transparency would increase if they disclosed the financial relationships that they have with these companies.
To increase awareness of the availability of these currencies, they are promoted. Accessibility is a key component of developing an addictive disorder.
CJ: How does the volatility in crypto prices impact your mental health? It is common for people to see the volatility in their investments every day.
Because of fluctuations in an individual’s funds, volatility can cause mental health problems. Individuals who have crypto investments tied to their identities may experience low self-esteem and anxiety. Some people find volatility fascinating and may try to “time it”.
CJ: Do You believe crypto trading addiction will increase in the future?
The research on crypto trading is very limited. The majority of research on crypto trading focuses on whether it should be considered gambling disorder. Crypto trading is putting some value at stake in the hopes of gaining more.
This area needs research. How much attention this area receives depends upon both the market and whether consolidation/regulation occurs, whether the negative consequences of crypto trading garner significant headlines, and ultimately if there is funding (i.e., money) directed at this topic area.
The National Institutes of Health does not have funds for crypto trading. This is America’s largest source for research funding.
CJ Do you believe the cryptocurrency industry should do more in order to encourage safe investing?
The cryptocurrency industry should follow the lead of the NYSE and other stock markets and promote the idea money is an investment, not a scheme for quick riches. There are no regulations regarding gambling in the stock market.
CJ: Gambling is not allowed in many countries. Do you believe that cryptocurrency should be restricted similarly to keep young minds from becoming addicted?
This complex question requires nuance. Adolescence is a time of growth marked by risk-taking. Exposing a behavior early will increase your chances of developing an addiction. An individual who drinks alcohol for the first-time before 13 years old is at higher risk of developing an addiction.
How can teenagers access cryptocurrency? Parents must supervise and monitor their children if cryptocurrency is to be made accessible to them. Is there a minimum age for investing in companies listed on the NYSE
These questions indicate the shades of grey that are required to answer this question.
CJ: Is it possible to get you to answer yes or no? Is it possible to imagine a world without gambling?
Gambling has been a part of human life since the beginning of time!
The tomb of the Pharaoh contained dice. A tale about gambling addiction is told in the ancient Hindu text Mahabharata. It’s paired with a verse encouraging people to stop gambling. It is part of our DNA for good or bad. Social creatures are more inclined to take risks.
Gambling is one example of our willingness to take risks. I hope that the industry will take more responsibility in preventing gambling disorder and identifying when a person’s behavior is problematic.
CJ: Do you have any advice for people who are interested in cryptocurrency trading currencies?
A study was conducted to compare professionals who gamble with those who have a gambling disorder. (Weinstock Massura & Petry 2013, 2013. These two groups gambled a lot, but they had very different experiences with their mental and financial health.
Both groups supported gambling obsession. The main difference between the two groups was their financial discipline and whether they chased down losses or lost control. Professional gamblers had a bankroll they could gamble with. Professional gamblers only risked 5% per day
Once they reached their loss limit, they were done. They quit gambling. They were unable to recover their losses. Gamblers suffering from gambling disorders often had trouble setting limits and staying within them. This is the most important piece of advice.
You might consider whether you can’t keep your limits in check if you trade out of control.