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Study Suggests Cryptocurrency Holders Share Unique Psychological and Political Traits
In a recent study published in the journal PLoS ONEScientists examine the political, psychological, and social characteristics of individuals who purchase and trade cryptocurrencies.
Study: The Political, Psychological, and Social Correlates of Cryptocurrency Ownership. Image credit: Arsenii Palivoda / Shutterstock.com
Background
Cryptocurrency is a type of digital currency that is secured by cryptography. Unlike traditional currencies such as the United States dollar (USD) and the euro, which are issued by governments, cryptocurrencies are often decentralized, which has created challenges for governments and regulators interested in regulating these transactions.
Cryptocurrency relies on blockchain technology to record all transactions, keeping these exchanges anonymous. However, its anonymity and irreversible nature pose significant security risks, as exchanges and wallets are easy targets for criminals involved in financial scams and terrorist attacks.
Despite these challenges that have prevented the widespread adoption of cryptocurrency, millions of individuals around the world have invested in this technology, with cryptocurrency assets collectively worth over USD 3 trillion as of 2021. Therefore, the growing tendency of individuals to invest in these technologies and, as a result, engage in risky financial behaviors underscores the importance of investigating associations between cryptocurrency ownership and individual political, social, and psychological characteristics.
Study design
The study cohort included a demographically representative sample of 2,001 American adults. Participants’ responses about their involvement in cryptocurrency were collected between May and June 2022. Study participants also provided demographic information and responded to measures of various political, psychological, and social characteristics.
Important observations
Approximately 30% of the study population reported involvement in cryptocurrency, which translates to approximately 77 million Americans participating in this form of digital exchange and investment. Cryptocurrency ownership was significantly associated with younger males with higher educational backgrounds, financial status, and religious beliefs. A weak positive association was also observed with individuals of black and Hispanic ethnicity.
Strong positive associations have been observed between cryptocurrency ownership and conspiracy-related factors, including conspiracy theories and conspiratorial thinking.
In terms of political orientation, cryptocurrency holders exhibited a wide range of left- and right-wing political ideologies, making it difficult to accurately categorize their political views. Overall, cryptocurrency holders were more likely to report populist sentiments and stronger political attitudes, not left- and right-wing ones. Cryptocurrency holders were also more likely to support extremist groups and identify with the extremes of partisanship and ideology.
A positive association was observed between cryptocurrency ownership and involvement in normative political activities such as volunteering during elections, attending political meetings and protests, engaging in civil disobedience, and contacting elected officials. However, a positive association was also observed between cryptocurrency ownership and involvement in more problematic forms of interpersonal and political activities, such as being argumentative, escalating conflicts when disagreeing with others, and engaging in political violence.
Additionally, positive associations have been observed between cryptocurrency ownership and a range of “dark” personality behaviors, including narcissism, psychopathy, sadism, and Machiavellianism, which reflect a strategic focus on self-interest and a lack of morality and empathy for others.
Cryptocurrency holders were also more frequent users of alternative and fringe social media platforms than traditional social media platforms.
The researchers also performed a multivariate analysis that took into account all relevant variables representing demographics, thinking styles and intellectual attitudes, personality traits, and media environments. This analysis revealed that male gender, greater reliance on alternative and fringe social media platforms, argumentativeness, and aversion to authoritarianism were the strongest predictors of cryptocurrency ownership.
Among social media platforms, Telegram, YouTube, Reddit, Twitter, and blogs were the strongest predictors of cryptocurrency ownership. In contrast, Facebook usage was identified as the only negative predictor of cryptocurrency ownership.
Meaning of the study
The analysis reveals that cryptocurrency holders are more likely to have various non-normative and maladaptive characteristics than those who have never owned cryptocurrency. Cryptocurrency users are also more likely to adhere to a wide range of political affiliations and identities, believe in conspiracy theories, have “dark” personality traits, and gather information about current events, public issues, and politics from alternative or fringe social media platforms.
Many governments are interested in regulating cryptocurrencies more strictly, emphasizing the importance of identifying the factors that attract people to own cryptocurrencies. Therefore, future studies are needed to analyze the differences in personal characteristics between different types of cryptocurrency ownership using well-developed multi-item questionnaires. Further research is also needed to understand how the characteristics of cryptocurrency owners change over time as the currency becomes more or less accepted in society.
Magazine Reference:
- Littrell, S., Klofstad, C., & Uscinski, J. E. (2024). The political, psychological, and social correlates of cryptocurrency ownership. PLoS ONE. doi:10.1371/journal.pone.0305178