NHS addiction clinics are treating a rising number of compulsive crypto traders as young men fall victim to get-rich-quick schemes.
Amanda Pritchard, chief executive of NHS England, said online cryptocurrency exchanges are a new frontier for gambling addiction.
Investors buy currencies like Bitcoin and Ethereum in the hope their value will rise and they can sell for mega profits.
The tokens can also be used to bet on sports without checks and balances.
One in 10 Brits now hold cryptocurrency in online wallets but regulation is lax.
Men younger than 35 are estimated to make up about 40 per cent of the market and be at highest risk of addiction.
For some, cryptocurrency dealing becomes an addiction and takes over their life
Dr Niall Campbell
Speaking at an NHS conference in Manchester on Wednesday, Ms Pritchard said: “This year the NHS opened a 15th specialist centre for gambling addiction, responding to a real and growing social need.
“Ever more opportunities are springing up for younger people to get addicted to gambling.
“They include, as I heard from staff when I visited the National Problem Gambling clinic earlier this year, on unregulated cryptocurrency markets.
“The addictive habit sees people investing their own money in something with no fixed value, with the NHS left to pick up the pieces.
“This growing problem could create further demand for the health service.
“As a society we need to ask if we are okay to just continue picking up the pieces while the methods of keeping people hooked get ever more sophisticated.”
She said the habit was one of the NHS’ “challenges of the future” and a “global threat of the internet age”.
Symptoms of addiction include mood swings
MPs on the Treasury Select Committee have warned the crypto sector needs tougher regulation from the UK Government.
The trading system it uses means authorities cannot see who owns, buys or sells the currencies and people can remain anonymous.
This means the value of investments can fluctuate wildly and there is almost no protection when something goes wrong.
Private addiction clinic Castle Craig says symptoms of addiction include constantly checking prices, spending all free time trading, getting into financial trouble, and mood swings.
Dr Niall Campbell, a psychiatrist at the Priory Hospital, said: “Over the past few years we have seen a steady stream of patients who have got into serious difficulties with cryptocurrency dealing.
“For some it becomes an addiction in that it takes over their life.
“It can be very similar to gambling addiction, as people constantly chase their losses.
“There are huge consequences to their mental, financial and relationship health.”
NHS bosses have had to increase the number of gambling clinics in England as referrals have soared in recent years, with an estimated 138,000 problem gamblers nationwide.
How do I spot crypto scams?
CRYPTO scams are popping up all over the internet. We explain how to spot them.
- Promises of a high or guaranteed return – Does the offer look realistic? Scammers often attract money by making fake promises.
- Heavy marketing and promotional offers – If they are using marketing tricks to con customers you should beware.
- Unamed or non-existent team members – Just like any business you should be easily able to find out who is running it.
- Check the whitepaper – Every crypto firm should have a white paper. This should explain how it plans to grow and make money. If this doesn’t make sense, then it could be because the founders are trying to confuse you.
- Do your research – Check reviews online and Reddit threads to see what other people think.