Impact of Sources of Finance on Bitcoin Investments Among the Households

Abstract

The study provides a comprehensive exploration of the factors influencing the adoption of Bitcoin and cryptocurrency as investment options, with a focus on addressing research gaps in personal finance related to household cryptocurrency adoption. Key points of investigation include understanding the financial inclusion and demographic characteristics that influence household adoption of Bitcoin, measuring its profitability, and determining its impact on household wealth. The study also examines the impact of miner's revenue on cryptocurrency prices and seeks to validate the presence of volatility in the Bitcoin market. To address the influence of financial inclusion and demographic factors, the study utilizes the CMIE Peopledx database and logistic regression to measure the impact of existing borrowings and savings on the adoption of Bitcoin or cryptocurrency. The findings validate that saving and investing in formal financial instruments lead to higher cryptocurrency investment, with access to commercial banks and ATM usage also contributing positively.