Australian researchers have discovered a link between certain personality types and crypto investment
It’s only natural given its increased profile and value, that your clients will want to talk about investing in cryptocurrencies.
But a recently-released study from Australia suggests that you should perhaps be wary of a client who appears obsessed with cryptos as they may have a ‘dark’ personality type.
Academics at the Queensland University of Technology and Macquarie University found a link between those with traits such as narcissism and sadism and the purchase of cryptos.
The study asked 566 people questions that are standard in psychological tests with 26% of respondents identifying as crypto owners and 64% interested in investing in digital currencies.
Researchers assessed traits linked to the ‘dark tetrad’ of Machiavellianism, narcissism, psychopathy, and sadism. These behaviours are frequently associated with extreme selfishness, lack of empathy in the exploitation of others, and risk taking.
The study revealed that those who are interested in crypto investing are often attracted to the assets due to the same high-risk/high-return potential of gambling.
But they also identified that those who distrust government may be attracted to the ‘free-from-government’ nature of cryptos over fiat currencies.
Machiavellianism is likely to be a driver for those who buy cryptos because they are not linked to governments, believing that officials are corrupt.
Narcissists’ self-centred positivity makes crypto attractive to this group as they believe things will always improve for them. This overconfidence drives their typical risk-taking tendency.
Psychopaths hate the idea of missing out on investment returns that others may be enjoying. They also need stimulation from taking risks.
Sadists may also have a fear of missing out, plus the pleasure of seeing others’ pain. However, they lack the positivity of narcissists and therefore have a muted liking of cryptos.
The researchers point out though that not everyone who invests in crypto has dark tetrad personality traits.