The effect of money on the brain

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Money’s effect on your brain is similar to cocaine, says book author Kabir Sehgal Minted. In the book, he examines the neurological effects of money and how it could possibly be used to predict stock markets.

Neuroeconomists (scientists who study how the brain is affected by money) performed several brain scans on individuals who were on the verge of making money, and the results were astounding, Sehgal says. Studies show that these people had the same neurological response to making money in their “pleasure centers” as someone who was addicted to cocaine.

Through the use of brain scanners, neuroeconomists already have the ability to recognize likes and dislikes. This leads some to believe that over the next several decades it will be possible to predict the ups and downs of the stock market based on these analyzes. A number of hedge funds, Sehgal says, are already hiring traders based on their brain scans. The purpose of these analyzes is to hire someone who does not take financial risks.

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