The Dark Tetrad: A Psychological Profile of the Crypto Investors
Thriving in the financial sector requires nerves of steel, as the frequent ups and downs of the markets can push even seasoned traders to the brink. The cryptocurrency industry, renowned for its extreme volatility, is no exception.
Research conducted by the University of Toronto and the University of Miami has found that cryptocurrency owners are more prone to certain psychological challenges.
General Profile
The study titled “The political, psychological, and social correlates of cryptocurrency ownership” conducted in the USA involved a sample of 2001 Americans. Remarkably, 30% (!) of participants reported that they have owned or currently own cryptocurrencies. This finding from two university research teams highlights the significant penetration of cryptocurrencies into society.
The research paints a collective social portrait of cryptocurrency buyers as primarily young to middle-aged men with high incomes and varied political views.
Interestingly, most of these individuals tend to support the Democrats, contrary to the stereotype of crypto industry members favoring the far-right. This point gains more relevance as the Republican Party, led by presidential candidate Donald Trump, has incorporated cryptocurrency issues into its campaign platform, while the Democratic Party, under new leader Kamala Harris, has not yet clearly articulated its position on cryptocurrencies.
Additionally, the study revealed that cryptocurrency enthusiasts commonly source their information about politics, societal issues, and current events from platforms like Telegram, YouTube, Reddit, and various blogs. Although they access traditional media, they typically show a distrust of official news channels.
Additionally, the study revealed that cryptocurrency enthusiasts commonly source their information about politics, societal issues, and current events from platforms like Telegram, YouTube, Reddit, X and various blogs. Although they access traditional media, they typically show a distrust of official news channels.
Psychological Profile
The study highlights that individuals who invest in cryptocurrencies are inclined to endorse conspiracy theories, support extremist groups, and align with various populist sentiments.
This finding seems to contradict the earlier depiction of these individuals as having moderate political preferences. Nevertheless, the researchers assert firmly:
Cryptocurrency buyers were more likely to have elevated levels of both positive and negative emotions. Demonstrate higher levels of deviant personality traits, including “dark tetrad” traits
The Dark Tetrad expands upon the well-known “Dark Triad,” encompassing Machiavellianism (characterized by manipulation, moral indifference, and a lack of empathy), narcissism, and psychopathy, with sadism added due to its similarities to the other three traits.
The study further reveals that cryptocurrency owners often feel a need for chaos and tend to exhibit schizotypal traits (such as eccentric behavior and unusual thinking) and paranoid behaviors. They also frequently possess a victim mentality and dogmatic thinking.
Interestingly, a common sentiment among the 30% of participants who purchase digital assets is a perceived loss of personal freedom. This sense of constraint is possibly what drives their attraction to DeFi (Decentralized Finance) as a means to escape the rigid controls of the traditional financial system.
So, if you suspect that a crypto trader you know seems “a bit off,” there might be some truth to your observation.
Is the Situation as Grim as It Appears?
The scenario might look alarming at first glance, but it's not as dire as it may seem.
Firstly, the study's authors emphasize that they're identifying a “tendency” for certain psychotypes, rather than clinical diagnoses. The research highlights only minor deviations from the average values across the sample.
It's important to remember the highly volatile nature of the cryptocurrency market, where traders can both make and lose millions of dollars within hours. Events like the recent Bitcoin rally or the FTX crash illustrate this volatility. Market fluctuations, coupled with incidents of fraud and scandals, have inevitably influenced the psychology of cryptocurrency enthusiasts. The study notes that the responses from participants often included elements of self-irony, indicating that some respondents were joking, and at times even showed clear self-deprecation.
Secondly, the “dark” personality traits observed among cryptocurrency enthusiasts are also significantly present in traditional corporate environments. For example, there's a direct link between strict corporate rules and psychopathic tendencies among employees.
Thus, as noted by the University of Toronto and the University of Miami, this study is merely an initial step in exploring the relationship between cryptocurrency ownership and behavioral traits. This suggests that the issue requires more thorough investigation and that the research should be extended to a much larger group.
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