Analysis of the Cryptocurrency Adoption Decision: Literature Review

Abstract

Cryptocurrency is a recent and significant innovation in the financial industry. The goal is to offer a currency that is not tied, created, or backed by a government. Cryptocurrency use the Blockchain technology as the financial platform. Cryptocurrency adoption level has increased, and the market has grown dramatically. There have not been enough literature investigating the adoption and acceptance of the cryptocurrency by users. The aim of this paper is to fill the gap in the current literature by investigating the current cryptocurrency adoption level, adoption-influencing factors, providing an in-depth analysis of these factors and discussing some pitfalls surrounding the cryptocurrency adoption. We believe that despite the difficulty to find out an accurate number of cryptocurrency users, a good estimate can be made by studying the number of cryptocurrency exchange sites' users. In addition, the paper suggests that the main factors driving the adoption decision revealed from the literature review are the investment opportunity cryptocurrency forms, the anonymity of the transactions and privacy, the acceptance by businesses as a payment method, the fast transfer of funds, the low cost of transactions, and technological curiosity. The research findings help researchers, regulators, and cryptocurrency developers to better understand their consumer's intention toward cryptocurrency adoption.