Revealing the Dark Personality Traits of Crypto Investors

The inception of Bitcoin’s open-source software about 15 years ago sparked widespread interest in the world of cryptocurrency, attracting a diverse range of individuals. While some are drawn to the decentralized and anonymous nature of this economic system, recent research suggests a correlation between cryptocurrency ownership and certain personality traits.

A survey conducted among over 2,000 American adults in 2022 revealed a tendency for cryptocurrency holders to exhibit what researchers described as a “dark” personality. The study, conducted by researchers from the University of Toronto and the University of Miami, also found a connection between cryptocurrency ownership, beliefs in conspiracy theories, and a preference for fringe social media platforms.

Although the idea of a privacy-focused digital economic system has roots dating back to the 1980s, it was Bitcoin’s launch in 2009 that garnered significant mainstream investment. The global cryptocurrency market, valued at nearly US$2.5 trillion, is predominantly dominated by Bitcoin, Ethereum, and Tether.

Cryptocurrency investors are attracted to the encrypted ledger technology that provides enhanced privacy and security, eliminating the need for traditional financial institutions and government oversight. Despite its growing popularity, cryptocurrency remains a niche form of currency, often likened more to gambling chips than conventional money.

Motivated by a distrust in established authorities, cryptocurrency investors may lean towards embracing conspiracy theories and hold alternative political views. Research suggests that cryptocurrency owners span a spectrum of ideologies, including anarchists, libertarians, and populists, with some studies pointing to links between far-right beliefs and white supremacism.

To delve deeper into the characteristics of cryptocurrency investors, a team of researchers polled 2,001 Americans on their ownership of cryptocurrencies and their political, psychological, and social traits. The study found that cryptocurrency owners come from diverse political backgrounds, with tendencies towards Christian nationalism and American exceptionalism. They also exhibited dark personality traits such as narcissism, Machiavellianism, psychopathy, and sadism.

Key predictors of cryptocurrency ownership include being male, relying on alternative social media sources for information, having an argumentative nature, and opposing authoritarian governance. While the research sheds light on the demographics of cryptocurrency investors, it’s essential to recognize the varied motivations and interests guiding their investment decisions.

The authors of the study argue that these findings offer valuable insights into understanding the cryptocurrency demographic in a time when trust in traditional institutions and media is increasingly fragmented. As governments consider regulating or incorporating cryptocurrencies into existing frameworks, understanding the appeal of these digital assets becomes crucial for policymakers and industry stakeholders.

The research findings were published in PLOS ONE, emphasizing the importance of comprehending the allure of cryptocurrencies amid evolving regulatory landscapes.