The Harmful Consequences of Cryptocurrency Speculation and Associated Risk Factors

Abstract

This correlational study examines the most prevalent forms of harm associated with cryptocurrency speculation and the extent to which these are related to known risk factors including the fear-of-missing out (FOMO), impulsivity and problem gambling. A total of 487 crypto investors recruited from an online panel completed measures of crypto engagement, impulsivity, FOMO, problem gambling and the types of harm experienced that could be at least moderately be attributed to cryptocurrency. Individual-difference predictors of general participation were only weak predictors of the level of engagement in cryptocurrency. However, problem gambling scores (PGSI) and FOMO scores were reliable predictors of the level of harm reported, with the strongest model obtained for financial harm. The findings suggest the need to screen for speculative trading in gambling studies and that resistance to FOMO is an important element that would need to be targeted in clinical interventions for people experiencing harm.