Investment Decision of Cryptocurrency in Millennials and Gen Z

Abstract

Cryptocurrencies have experienced exponential growth in the 10 years after their discovery in 2009.Despite the popularity of cryptocurrencies as an investment, there is still much to be understood about the factors that influence cryptocurrency investment.This study seeks to find the influence of behavioral finance factors, specifically herding, heuristics, and prospects on investment decision for millennials and gen Z in Indonesia.The research method used is multiple regression with several stages including reliability and validity tests, descriptive analysis, and hypothesis testing analysis.With a sample of 140 respondents, it is concluded that herding and heuristic factors have a significant influence on investment decisions in the cryptocurrency market, while the prospect factor does not have a significant influence on investment decisions in the cryptocurrency market.The results of this study indicate that non-fundamental factors are still high as reflected in herding and heuristics on millennials and gen Z investors in Indonesia.Another implication is that many investment decisions are "not yet" sound in a very dynamic situation in the cryptocurrency market.