When financial volatility meets healthcare: how crypto investments result in forgoing medical care

Purpose Since its inception in 2008, cryptocurrency has become one of the most popular investment derivatives in the financial marketplace. While financial losses from investments are common, the extent to which such losses impact on essential aspects of life, such as access to medical treatments, requires further investigation. Therefore, in the present study, we examine whether cryptocurrency investments are associated with a higher likelihood of experiencing financial difficulties that hinder access to medical treatments. Design/methodology/approach To examine whether cryptocurrency investments could result in forgoing medical care, we conducted a logistic regression analysis on the restricted data from the 2021 National Financial Capability Study (NFCS). Additionally, we employed the propensity score matching (PSM) approach and Lewbel’s instrumental variable (IV) regression analysis to reduce potential endogeneity concerns and ensure the robustness of our findings. Findings We find that the odds of skipping doctor visits and skipping prescriptions for cryptocurrency investors are 2.239 times and 2.024 times, respectively, the odds for non-investors, even after controlling for respondents’ COVID-19 exposure and job loss. Our results remain consistent after accounting for insurance coverage and other sociodemographic factors, such as financial literacy and investment knowledge. Originality/value The present study is the first to explore the link between cryptocurrency investments and forgoing essential medical care, highlighting the often-overlooked health-related consequences of engaging in high-risk financial investments. Unlike prior research focused on cryptocurrencies’ extreme volatility and financial consequences, our findings reveal how these investments may hinder access to necessary medical treatments, which underscores the importance of financial literacy in navigating investment risks and health well-being.