This Q&A is the full interview with Dr. Jeremiah Weinstock. For our deep dive into cryptocurrency trading addiction, with input from the full group of experts, check out this article. Below is an interview with Dr. Jeremiah Weinstock, a professor in the Department of Psychology at Saint Louis University, focusing on addictive behaviors with an emphasis on gaming disorder and exercise as an intervention. This is the full transcript of our interview, quotes from which were published in our main article on the topic here. For a deep dive into the topic of cryptocurrency trading addiction and its links to gambling, follow this link. As for the full interview with Dr. Weinstock, see below.
CoinJournal (CJ): Do you think there are similarities between cryptocurrency trading addiction and gambling addiction? If so, could you name the most notable ones? While cryptocurrency trading addiction is not an official diagnosis in our classification of psychiatric disorders, individuals who engage in cryptocurrency trading may struggle and suffer negative consequences from this type of behavior. The hallmark of gambling disorder and other addictions are (1) a loss of control, which means that an individual tries to stop or reduce their gambling behavior and is unable to do so, (2) tolerance, needing to do the behavior at a greater intensity to achieve the desired effect and (3) withdrawal, experiencing irritability and moodiness when trying to stop or reduce. If individuals who engage in cryptocurrency trading experience one or more of these characteristic symptoms, they are potentially addicted to cryptocurrency trading. Emotion-seeking traders who are trading frequently (i.e. not buying and holding the investment strategy) are at greater risk of this behavior becoming maladaptive.
CJ: In your opinion, what makes activities like trading so addictive? The uncertainty and volatility of cryptocurrency markets. An “opportunity” to make money in a short time exists in these markets. Individuals who experience a big win early on are more susceptible to cryptocurrency trading becoming addictive.
CJ: What are your thoughts on influencers who, in exchange for a fee from the founders, promote shady cryptocurrencies to their followers with little knowledge of how it works – do you think this is problematic? I don’t think influencers are problematic as the general public generally understands that they are trying to monetize the topics they are highlighting or promoting. Disclosure of your financial relationship with these companies would increase transparency. Promoting these coins increases perceived availability. Availability is a necessary component of developing an addictive disorder.
CJ: In your opinion, would the daily volatility of cryptocurrency prices affect mental health as people see their investments go up and down so widely each day? Yes, volatility contributes to mental health issues as individuals’ money goes up and down on a daily basis. As individuals link their cryptocurrency investment to their identity, it affects self-esteem and contributes to depression and anxiety. For some individuals, volatility will be exciting and they will chase the thrill of trying to “time” the market.
CJ: Research on cryptocurrency trading addiction is still limited, do you think the need for this is likely to increase in the future? There is limited research on cryptocurrency trading to date, and much of it investigates whether cryptocurrency trading should be included as part of gaming disturbance because the behavior itself meets the definition of gaming – putting something of value at risk when the outcome is unknown in hopes of gaining something of greater value. There is a need to carry out research in this area. The attention this area receives depends on the market and whether consolidation/regulation takes place, whether the negative consequences of cryptocurrency trading generate significant headlines, and ultimately whether there is funding (i.e. money) directed towards this topic area. Currently, cryptocurrency trading is not a topic area funded by the National Institutes of Health, the largest source of research funding in America.
CJ: Do you believe that the cryptocurrency industry should be doing more to promote safe investments and address the problem of addiction? The cryptocurrency industry should follow the example of the NYSE and other equity markets as they promote the idea that the money in the market is an investment, not a get-rich-quick scheme. There are no regulations on gambling on the stock exchanges.
CJ: Conventional gaming is restricted in many territories to consumers over the age of 18. Do you believe that there should be a similar rule within cryptocurrency in order to protect younger and more impressionable minds from possible addiction? This is a complicated question that requires nuance. Adolescence is a period of development characterized by risk taking. Early exposure to an addictive behavior increases the chance that the behavior will become problematic. For example, individuals who drink for the first time before age 13 have a significantly higher risk of developing an alcohol use disorder. How do teenagers gain access to cryptocurrencies? Parental monitoring and supervision is extremely important for cryptocurrency to be available to teens. However, does the NYSE have age limits for investing in publicly traded companies? Both questions reveal the shades of gray needed to answer this question.
CJ: If I can press you for a yes or no answer, do you believe the world would be a happier place without gaming? Gaming has been a human endeavor since the dawn of time! Data was found in the pharaoh’s tomb. The ancient Hindu text, the Mahabharata, contains a story of gambling addiction with a subsequent verse discouraging gambling. For better or worse, it’s in our DNA. We are social creatures who take risks. Gambling is an expression of our risk taking. My hope is that the industry will take prevention of gaming disorder seriously and identify when someone’s behavior becomes problematic.
CJ: What advice can you give to people interested in trading cryptocurrencies, who may be predisposed to gambling-related addictions? A few years ago, we did a study comparing professional gamblers to individuals who have a gambling disorder (Weinstock, Massura, & Petry, 2013). These were two groups of people who gambled regularly but experienced very different results in terms of financial consequences and mental health. Both groups endorsed the game’s concern; however, the big difference between the two groups was discipline with your money versus losing control/chasing losses. Professional players had a bankroll they used to play with. Each day, professional players risked just 5% of their bankroll. Once they hit that loss limit, they were done for the day. They wouldn’t play anymore. This prevented them from increasing their losses. Individuals with gaming disorders were not able to set boundaries and adhere to them. This idea of setting limits and sticking to them would be the biggest and most important piece of advice. And if you find you can’t meet your limits, ask yourself if this is a sign that your trading is getting out of hand!