Crypto Reddit Psychology: Have You SEEN This Study?!

One of the first things you learn in Cryptocurrency is to take anything you Read on social media about the crypto Market or your favorite coins and tokens With a big pinch of salt Naturally there’s no shortage of such Things when the crypto market is Crashing or when bad news comes out About a specific project and they often Add fuel to the fire A team of researchers recently decided To find out exactly what these posts do To the mental health of crypto holders And today i’m going to discuss what they Found and how it’s affecting the crypto Market [Music] Before we talk in motion i need to go Through the motions if this is your First time in the audience my name is Guy and this channel is about crypto in Case it wasn’t obvious My mission is to create crypto content That’s so good it’s ridiculous Coins tokens news and reviews explained In a way that’s meticulous If this sounds miraculous subscribing to The channel and pinging that Notification bell is what you should do Go ahead it’s not strenuous All right i’m starting to run out of Rhymes so let’s see what effects social Media posts about crypto are having on The mind

The research paper i’ll be summarizing Today is about crypto related activity On reddit For those unfamiliar reddit is one of The most popular social media platforms In the world with over 500 million Monthly active users Reddit itself consists of a series of Dedicated discussion boards known as Subreddits and the cryptocurrency Subreddit boasts over 5 million users Who share their thoughts about the Crypto market and crypto projects in Real time Like many social media platforms reddit Has played a role in shaping the real World through the collective actions of Its users the most famous example of This is arguably the coordinated short Squeeze of hedge funds by the wall Street bets subreddit in 2021 The cryptocurrency subreddit has also Seen no shortage of such campaigns and Though many of these have involved Pumping and dumping mean coins some of Them have been more serious such as the Coordinated withdrawal of monero’s xmr From exchanges in april this year More about monero in the description Now the main takeaway is that subreddits And their posts have the power to move Markets and reddit’s influence on the Crypto market is likely to increase as The social media platform itself

Embraces crypto through things like Tokenized community points and nfts This is why the research paper i’ll be Summarizing today is so important it’s Titled quote A thematic analysis of mental health Addiction and gambling discussion on Reddit during the recent cryptocurrency Market downturn and i already feel Personally targeted Jokes aside this paper is still in Preprint meaning it hasn’t been peer Reviewed by an academic journal this Means there’s a small chance that what The authors found could be null and void Because they didn’t crunch the numbers Correctly but it seems from here like They did a damn good job For anyone wondering the paper was Penned by researchers from the University of queensland and the National center for youth substance use Both of which are based in australia Based on the declaration section at the End of the paper none of the authors Hold any cryptocurrency So with that context out of the way Let’s see what this research paper says About us crypto holders note that a link To the full paper will be down in the Description if you’re interested and I’ll give you my thoughts as we go along The paper begins with a brief Introduction wherein the authors point

Out that the crypto market grew Exponentially over the last two years Hitting a market cap of over two Trillion dollars in april last year I’ll quickly note that it’s a bit odd That the authors chose this specific Price and period since the crypto market Hit nearly three trillion dollars in November last year In any case the authors go on to say That crypto’s meteoric rise attracted Millions of retail investors who are put At risk because crypto isn’t Sufficiently regulated Fair but i don’t like where this is Going To add insult to injury the authors Imply that decentralized finance is Somehow analogous to gambling now don’t Get me wrong there’s no shortage of Degeneracy in defy but it’s wrong to tar Such an important crypto niche with such A broad brush Given these alleged issues the authors Conclude that quote the potential for Harm and economic loss of cryptocurrency Trading and investment justifies further Investigation into its relationship with Mental health And add that there isn’t much research About the subject The authors then reveal that for the Purpose of their study they focused on The 22 drop the crypto market saw way

Back in january this year and how users On the cryptocurrency subreddit reacted Now this is a little unfortunate because If they’d waited until may they would Have had much better data about how the Crypto community handles crashes given Terror’s implosion and all more about That in the description i digress The authors then reveal that the Cryptocurrency subreddit is the largest English cryptocurrency forum which is News to me but not all that surprising The authors also specify that they’ll be Taking a qualitative rather than Quantitative approach which makes sense For reference qualitative involves Looking more at the contents and Categories rather than the raw numbers To draw conclusions This ties into the second part of the Paper and that’s the methodology aka how The authors analyze the content of the Cryptocurrency subreddit during the Crypto market drawdown in january The authors start by saying that they Analyzed a whopping 1 315 threads on the cryptocurrency Subreddit between the 3rd of january and The 4th of february During this one month window the crypto Market dropped by nearly 25 which is Standard as far as crypto volatility Goes What’s interesting is the authors note

That quotes this study received ethics Exemption from the university of Queensland as it did not include human Participants and used publicly available Data Now call me crazy but this doesn’t sound Quite right i mean yes there were no Human participants but you’d think that The people posting on reddit would count As humans and it’s not just me either Many of the reactions by users of the Cryptocurrency subreddit to this study Ask whether they’re being used as lab Rats and even joke about posting Nonsense to mess up future studies in Any case the authors then explain that They filtered the 1 315 threads they Collected using keywords related to Mental health and gambling This left them with 225 threads which They reduced to 194 after removing Duplicate threads and any threads Without replies and reduce the number Further to 130 after removing any Threads related to market analysis news Stories or technical support Now i don’t know who needs to hear it But never ever go to reddit for Technical support mark my words you will Lose your crypto or worse Now having identified the relevant Threads the next order of business was To analyze their contents and by the Sand of it one of the authors was tasked

With reading through every single thread And comment manually sounds like someone From our research team What’s more is that the author tasked With reviewing these reddit threads had To quote familiarize themselves with the Data set meaning they read through these Threads and all their comments multiple Times anything to get that psychology Credit for their degree i suppose In all seriousness the authors managed To identify common themes across all the Threads and their comments Three themes emerged which were then Subdivided into sub-themes The first theme was emotional state and Mental health which was subdivided into Negative sentiment positive sentiment And an absence of emotion What’s funny is that the recurring Themes within these sub-themes were Crypto investors being happy about Buying the dip while simultaneously Being sad that they didn’t have more Money to buy the dip something also Pointed out in the subsequent reaction To the paper on the cryptocurrency Subreddit The second theme was strategies for Coping which was subdivided into Reducing stress related to the current State of the crypto market and combating The urge to trade presumably the urge to Buy the dip

I was happy to see exercise as one of The recurring themes within these Sub-themes it’s one of the many ways you Can significantly reduce crypto related Stress and you can find out what some of The other methods are using the link in The description Now the third theme was likeness to Gambling which was subdivided into Fixation or addiction and risk Perceptions of cryptocurrency What’s hilarious is that one of the Recurring themes within these sub-themes Was that quote life in general is a Gamble which is kind of true if you Think about it Another two recurring themes that stuck Out to me were that crypto trading is Gambling if you’re using leverage and That crypto investing is gambling if You’re not doing your research This is also very true which is why you Should check out our recent video about How to research cryptocurrencies during A bear market if you haven’t already That will be of course In the description Anyways the authors then take some time To showcase the results including some Of the threads and comments on the Cryptocurrency subreddit that fell into The three categories of emotional state And mental health strategies for coping And likeness to gambling the authors

Note that more than half of the 130 Threads they analyzed were about Emotional state and mental health and Here are a few of the gems they found Now apologies in advance if you were one Of the folks who posted these comments If you were drop a comment down below if You’re brave enough to let us know Quote almost down 100k close to 2x my Yearly salary from a peak of 150k not Gonna sell now i hate myself for not Selling at the peak but now it’s too Late Sounds like my first time in crypto On a more positive note quote While people are screaming and crying I’m smiling and buying i feel like a kid In a candy store with all these Discounts can’t decide what to fomo in Though Speaking of feelings the authors were Surprised to find that the most common Emotion associated with the crypto Market crash was apathy at 44 In other words nearly half of the crypto Holders and traders on the Cryptocurrency subreddit were cool with The crash For example quote Ever since last may when i experienced Shock i don’t think a single dip has Caused me to truly panic I guess this anon didn’t know that Another bloody may was on its way but

I’m sure he or she handled it well after All quote When you become emotionless about losing Money you’re halfway to getting rich i Didn’t know warren buffett was on the Cryptocurrency subreddit i hope you’re Enjoying it sir Now another great comment was quote i Honestly couldn’t care about this dip Because i’m bullish in crypto for the Long term it was never my intention to Cash out in the short term That reminds me of an important Statistic and that’s that more than 50 Percent of first-time crypto investors Became hodlers This was discovered by the bank for International settlements which is one Of the most anti-crypto institutions out There more about that in the description Anyhow when it comes to the coping Strategies employed by crypto holders The threads and comments are basically What you would expect spend more time Outdoors do other things besides crypto Remember to take profits and so on One comment that stuck out to me was Quote advising people to sell in red i See if you’re thinking of selling in red Then you deserve all that emotional Distress Someone call the police because there’s Been a murder not literally of course Now another comment that caught my eye

Was quote i try to follow this advice Myself when i’m craving a rush i’ll try To do at least 30 minutes of cardio Before making a trade While it’s not a dopamine hit the Endorphins help me clear my mind and Reflect on if i’m making a good decision Or fomoing now this actually ties into The video about crypto stress that i Mentioned a few moments ago If you’re tired or hungry you’re more Likely to act irrationally and i reckon The same principle applies when you’re Feeling restless Believe me exercise does wonders for the Brain Now in terms of the likeness to gambling Theme the authors found that there’s Lots of disagreement on the Cryptocurrency subreddit about whether Crypto investing is analogous to Gambling Some argue that all crypto investing is Gambling as exemplified by this comment Quote it’s all a gamble every single Crypto investment is a gamble not matter If it’s coins or altcoins or Bitcoin or whatever it is still a gamble Even with research anything can happen Others argue that crypto isn’t gambling At all as exemplified by this opposing Comment quote Anyone who says crypto is a gamble Should read a book on finance and maybe

Get some online economy classes because In no way it can be compared to betting Or a casino I reckon the truth is somewhere in the Middle as it really does depend on which Crypto project we’re talking about There’s no question that coins Aren’t that different from poker chips And you can find out how to spot them Using the link in the description Anywho the third part of the paper Discusses the findings from the second Part of the paper Here the authors address the element in The room and that’s that the crypto Market has continued to crash since January and took multiple arrows to the Knee in may and june In more ways than one the authors note That obsessively checking one’s crypto Portfolio during pumps and dumps seems To be the most popular pastime of crypto Holders on reddit guilty as charged Moreover quote our findings indicate That long-term conviction might protect Against mental distress caused by Fluctuating cryptocurrency prices and i Reckon the authors are on to something There i mean it would be crazy if all This crypto adoption is just because Investors can’t fathom selling at such a Massive loss and end up holding instead As a result only to find that that was The better option after all and only

Because the only people left were Holders There seems to be a bit of an echo Chamber in this regard as the authors Found that quote posts recommending Profit taking were met with occasional Hostility and i reckon that’s a bit of An understatement In addition quote descriptions of apathy And indifference indicate that prolonged Exposure may desensitize participants From the dramatic fluctuations of the Market The authors note that this Desensitization likely makes it possible For crypto investors to make more Rational decisions but they caution that This desensitization could have negative Effects elsewhere in one’s life I find that hard to believe as acting Rationally is probably best in almost Every situation The authors are also suspicious about The absence of advocacy for leverage on The cryptocurrency subreddit and assume That this is simply because the crypto Market was in a downturn Makes sense to me the authors also take Issue with the absence of a criteria for What counts as quote problematic Cryptocurrency trading behavior leave it Up to the psychologists to diagnose Everything am i right To be fair it’s true that a

Clarification of crypto definitions is Desperately needed and it’s something That we at the coin bureau actively try To do because well nobody else seems to Be doing it and it needs to be done The authors conclude that the Cryptocurrency subreddit could be the Ideal place for crypto holders to go When the crypto market is messing with Their minds and i definitely agree but i Must stress that you should proceed with Caution especially when the crypto Market is rallying Now the fourth and fifth parts of the Research paper are about the limitations Of the study and the author’s conclusion As far as limitations go the authors Lament the fact that they were only able To gather data for a single month Especially given the fact that the Crypto market continued to crash They also aren’t too happy about Throwing out 90 of the threads they had Initially gathered because they weren’t Directly related to mental health They argue this is a justification for a Dedicated subreddit for crypto holders Experiencing distress but i reckon you Want as much engagement as possible with These kind of posts and you’re more Likely to get that engagement on a Larger subreddit In the conclusion the authors just Reiterate everything they mentioned

Earlier namely that the cryptocurrency Subreddit serves as a good support Network and the criteria for what counts As problematic crypto trading and Investing need to be defined On that note if you want to brush up on Your technical analysis before the next Crypto bull market comes around you can Check out our technical analysis Tutorials link to the first installment Will be in the description So this brings me to the big question And that’s what the findings of this Paper mean for the crypto market Well i’ll start by saying that the paper Is admittedly limited in its scope Covering just one month when the crypto Market crashed by a fairly standard Percentage is not very representative of Just how crazy the crypto community on Reddit can get I know this because i check the Cryptocurrency subreddit almost every Day and when blood is truly in the Streets or when the crypto market is Greedily green the sort of stuff you’re Likely to come across often amplifies The mainstream sentiment just as i said In the intro The main takeaway from this paper for me Is that the crypto community on reddit Is a bit of an echo chamber just like Most other communities on social media This is something of a double-edged

Sword On the one hand you have crypto holders And traders telling each other to zoom Out when in doubt and even double down On investments even when the crypto Market is in the red which is ultimately Good for the crypto market since it Means less selling on the other hand you Have crypto holders and traders who Really should be selling because they’re Seriously strapped for cash yet they Feel pressured or even threatened to Clutch their bags lest they be booted From the crypto community More importantly i bet most crypto Holders and traders that are a part of The cryptocurrency subreddit rarely post And instead choose to lurk like me This makes it hard to measure what the Crypto community at large is actually Thinking and doing something that was Also noted by the authors In sum it’s clear that a lot more Research is needed about how crypto Holders and traders cope with the Vagaries of the market Let’s just hope that this future Research isn’t done solely to justify a Crypto crackdown due to the risks Associated with this new asset class That would be something straight out of The fat f’s playbook and if you have no Idea what i’m talking about you can Learn more about the fat f using the

Link in the description And that is all for today’s video about The cryptocurrency subreddit research Paper if you found it as interesting as I did smash that like button to let me Know Don’t forget to subscribe to the channel Too and ping that notification bell so You don’t miss the next video In the meantime you can check out coin Bureau clips for more crypto updates and Tune in to the coin bureau podcast to go Down the rabbit hole of altcoins and Other crypto topics You can also follow me on twitter tiktok And instagram for memes and to peek Behind the scenes and you can join my Telegram channel for all the daily Crypto updates you need If you want to know what cryptos i hold As part of my portfolio subscribe to my Weekly newsletter i also let you know What cryptos i’ll be covering in Upcoming videos If you want to support the channel while Looking slick for summer head on over to The coin bureau merch store and get some Crypto merch that suits you you can find Your way there and to all the other Resources i just mentioned using the Link in the description Thank you all so much for watching and i Will see you next time [Music]

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