Therapists are increasingly encountering patients who suffer from cryptocurrency trading addiction. To meet the demand, luxury private clinics and practitioners have developed therapies to cure individuals suffering from addiction. They are sold at a premium.
Crypto trading addiction recognized by some caregivers
Our fellow Bloombergers interviewed several therapists who specialize in treating crypto trading addiction. Health experts assure that this addiction is similar to gambling addiction. Dylan Kerr, an online therapist based in Thailand, compares trading addiction to sitting at a casino table:
It seems endless, and it demands your attention. If you take your eyes off the prize, you could miss massive opportunities and incur penalties. “
Lia Nower, director of gambling studies at Rutgers University in the US, likened excessive trading to lottery tickets when interviewed by the Washington Post. For her, this addiction hides above all an addiction to risk:
“People like lottery scratch-off tickets, because they can scratch madly and they get their reward in a second and it gives them a dopamine rush”.
Like gambling, drugs or alcohol, crypto trading activates dopamine receptors in the brain. Dopamine causes a feeling of pleasure and well-being. The person then risks continuing to trade crypto-currencies just to feel the benefits of dopamine. This is the spiral that leads to the installation of an addiction.
Cryptocurrency trading addicts are on the rise
Not surprisingly, trading addiction has a detrimental impact on mental health. According to a Finnish study published in January this year, individuals who have become addicted suffer from “psychological distress, stress and loneliness.”
Many therapists say they have noticed an increase in patients seeking help for crypto-trading addiction. Aaron Sternlicht, a therapist in New York, says there is “an influx of people seeking help” on the subject.
Enquiries about crypto-trading have increased by 40% at his practice, says the American therapist. Unfortunately, “many people who need treatment will not end up receiving treatment,” the caregiver points out. This addiction is not yet recognised by insurance companies. Therefore, only people with high incomes can afford therapy.
Therapy for trading addiction is particularly expensive, the Washington Post investigation reveals. For example, Aaron Sternlicht charges $2,500 for a consultation on the subject. A 45-day intensive therapy plan is sold for $25,000.
Private clinics offer expensive therapies
Some private clinics have also developed similar offerings for wealthier patients. This is the case of Paracelsus Recovery, a luxury detoxification centre located in Zurich and London.
The clinic offers, among other things, online therapy sessions at 484 euros per hour, a 7-day detoxification programme at 96,000 euros and a one-month residential treatment at 348,000 euros. According to Jan Gerber, the head of the private clinic, enquiries about therapy focused on cryptocurrency trading increased by 300% between 2018 and 2021.
The same is true in Scotland, where luxury clinic Castle Craig claims to have treated over 100 cryptocurrency trading addicts since 2016. The facility’s therapist has developed a 12-step recovery process similar to Alcoholics Anonymous.
Despite the increase in cases, Aaron Sternlicht says there is “not yet enough research” on the subject to properly diagnose patients. In many cases, individuals who say they are addicted to trading have developed more traditional addictions to alcohol, drugs or medication.
The Finnish study relayed above also hypothesises that people “with existing mental health problems would be more likely to take risks” with cryptocurrencies. In practical terms, excessive trading is more likely to be a symptom of existing psychological suffering.
