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Scarcity mindset as a predictor of cryptocurrency investments

Author

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  • Rooney, George
  • Loibl, Cäzilia

Abstract

The often lottery-like, speculative process of investing in cryptocurrency may be particularly interesting to investors with a scarcity mindset because the prospect of large gains can be attractive when financial resources are considered to be inadequate to satisfy needs or wants. Data from the National Financial Capability Study for 2021 (n = 2,364) and 2018 (n = 1634) confirm a direct and positive association between a scarcity mindset and cryptocurrency investing when established predictors of investment behavior are controlled. The role of scarcity mindset also holds for other risky investments. The study extends the understanding of behavioral mechanisms that explain risky financial decisions.

Suggested Citation

  • Rooney, George & Loibl, Cäzilia, 2026. "Scarcity mindset as a predictor of cryptocurrency investments," Journal of Economic Psychology, Elsevier, vol. 112(C).
    • Handle: RePEc:eee:joepsy:v:112:y:2026:i:c:s0167487025000790
    DOI: 10.1016/j.joep.2025.102867
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • G41 - Financial Economics - - Behavioral Finance - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making in Financial Markets
    • G53 - Financial Economics - - Household Finance - - - Financial Literacy

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