The interrelations of cryptocurrency and gambling: Results from a representative survey

Abstract

Researchers have only recently begun investigating the associations between cryptocurrency and gambling, although the structural similarities of financial speculation and gambling and the risks for transferring harmful behavior from one activity to another have been subject to numerous studies in the past decade. This is noticeable since the societal relevance of cryptocurrencies steadily increases. Based on a survey from 2019, this study analyzed a representative sample of 3864 Germans regarding their cryptocurrency and gambling use. The aim of the study was to determine differentiating factors between sole gamblers, sole cryptocurrency users and users of both as well as to uncover the socioeconomic profiles and behavioral patterns of the latter group. It was found that cryptocurrency users who also gamble are mostly young, male, well-educated and well-off and report significantly higher levels of domain-specific knowledge, ideological motivation and trust-perceptions about cryptocurrency as compared to the other groups. Using cluster analysis, the behavioral patterns of three distinct user groups were revealed, which differ by the intensity of their cryptocurrency involvement across mental, proactive and financial aspects. The observation that a considerable number of this technology-savvy population of users is considered heavy users indicates potential risks of over-involvement. The findings provide researchers and regulators with an improved understanding of the phenomenon of cryptocurrency and the psychological involvement of users.