The wildly fluctuating price of Bitcoin and other cryptocurrencies has always harmed the mental health of the traders. The sudden drops in the price of Bitcoin led to heavy losses that often result in bankruptcy and consequent poor mental health and depression. Dealing in the cryptocurrency industry has always been a rocky rollercoaster ride for all. Cryptocurrencies like Bitcoin are very volatile despite their immense popularity. It is this volatility that crushes the spirit of the traders. If you are stressed out with the current fluctuations in the market, you can try out multiple easy and handy mobile applications. These will assist you in investment decisions in the cryptocurrency market with Bitcoin Prime.
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Traders across the world have to be aware of the market conditions 24×7 to make the best of the crypto industry. This whole process of making fast financial decisions round the clock to avoid losses can be very stressful for the traders as patterns of the crypto market is not same as other financial markets. The traders and investors have to stay on the edge constantly in the fast-paced cryptocurrency industry that often has a severe impact on mental health. Several traders end up taking drastic steps whenever there is a major crash in the market. It is high time to sit up and take note of the depression and poor mental health that shroud the cryptocurrency industry.
What caused a stir in the industry regarding the relationship between Bitcoin and mental health is the Reddit post that sought ways to contact the US National Suicide Hotline for depressed Bitcoin investors and traders. One of the users invited the concerned individual to visit the forum of Suicide Watch on Reddit to talk it out with the rest. Christopher Parsons and Joseph Engelberg of the University of California conducted extensive research and published a significant thesis work on the linkage between hospital admissions between 1983 to 2011 in California and the daily plummet in stock returns concerning the psychological state of the patients.
Researchers from the College Of William And Mary and John Hopkins analyzed the impact of the share market failure of 2008 and concluded that wealth loss and financial ruin can cause terrible depression and increase the use of antidepressants. Moreover, people get so absorbed into the constantly fluctuating trends and patterns of the crypto market that it becomes addictive or compulsive for them leading to negative behavioral changes and depression. As the CIO of SEI Investments Co, Jim Smigiel, puts it, being engrossed in something so highly erratic is dangerous for mental health and overall wellbeing.
It seems that there are different interlinked stages between mental health and cryptocurrency market crashes. Failing mental health manifests in the form of alteration in cognitive abilities that result in poor decision-making at investments. What follows next is random changes in the degree of risk aversion of the individual that is a significant determinant of investment portfolio choices.
The negative mental health affects the discount rate of the individual that leads to a loss of motivation for investing in crypto assets for future returns. Finally, poor mental health affects productivity and increases medical expenditure that results in decreasing the availability of funds for investment in crypto assets. Besides, it may also lead to investment in more liquid assets. Therefore, you can make a strong and definite link between mental health and cryptocurrencies like Bitcoin and more.
Cryptocurrency is and always will be volatile and erratic. Most important of all, you have to keep an eye on the market to rake in profits as soon as the price of Bitcoin rises to a level that favors your interests. However, it is imperative that you stay calm and composed during price drops. Losses are inevitable but one can always invest wisely to stay afloat financially when the times get tough. Experts suggest that investing what one can afford to lose is the best way to deal with the erratic peaks and troughs of the cryptocurrency price pattern in the cryptocurrency market.
As long as one does not invest one’s life’s savings in cryptocurrency assets, one can manage to preserve steady mental health. Rebalancing investments and diversification is another prudent way of avoiding losses. Trading in cryptocurrencies shall not always be profitable, but you need to stay calm and not get too engrossed in the random market patterns. The most important thing you can do is to seek professional help in case of extreme deterioration of your mental health. This will help you to stay healthy and make better financial choices.