Researchers have found that people’s tendency to misinterpret patterns, known as the gambler’s fallacy, could benefit charitable organizations that accept cryptocurrency donations. The study suggests that charities can optimize their fundraising strategies by understanding how crypto holders make decisions based on perceived market conditions. The researchers conducted an empirical study and an online experiment, which both showed a correlation between market movement and donation activation and sizes. The gambler’s fallacy refers to the misconception that past events can predict future outcomes. The study also found that donors are more likely to be activated to donate after experiencing declines in asset value, as they believe prices will go up after their donation. These findings can be used as evidence for decision-making in managing charities that accept cryptocurrency donations.
