Examining the Potential of Cryptocurrencies as An Asset Class-An Empirical Study

Abstract

The market for virtual currencies in India rose from USD 926 a million during 2020 to USD 15 billion in January 2023. As reported by regulatory bodies, cryptocurrencies popularity has grown by eight hundred percent just this time last year. This study aims to find the effect of utility, user-friendliness of investment and effect of risk in trade on investors behavior (IB) with regard to cryptocurrencies. Digital currencies are an innovative kind of asset that has arisen. Because of its exceptional growth in value, Generation Y are turning to digital currencies as a means of investing. The Technology Acceptance Model is used in this article to investigate cryptocurrency uptake. A structured closed ended questionnaires are used to collect the responses. A user’s opinion is collected based on three parameters: utility, convenience with application, and safety. For collecting information, 185 investors were consulted by provided with questionnaires that they can complete the filling of responses by themselves. The respondents were chosen according to their readiness to participate in the survey. Convergent and discriminant Validity, reliability analysis and SEM model were used to analyze the data to find the results. The utility, utility, user-friendliness of investment and management of risk in trade are all having a major impact on behavioral patterns among investors while engage with cryptocurrency, according to the findings. This study contribution will help firms to comprehend users’ sensitivities with regard to cryptocurrencies and set various variables that influence its acceptance while delivering digital currency services to ease investment in better manner.