Empirical Analysis of Cryptocurrency Investors' Perception

Abstract

Cryptocurrency is an innovative financial asset class that operates on the blockchain system. Despite its highly volatile nature, the number of investors has increased significantly in the past decade. This chapter aims to examine the factors that influence investors' intention and decision to invest in such a volatile asset. The empirical relationship between Investment behavior (BEH), Intention to invest in the cryptocurrency (INT), Risk perception (RP), Awareness (AWR), Social influence (SI), and Fear of Missing out (FOMO) are examined. Data was collected from the 94 cryptocurrency investors in India using purposive and snowball sampling. The results showed that AWR and PR have a positive but insignificant effect on cryptocurrency investors' intentions and investment decisions. On the other hand, FOMO and SI have a statistically positive and significant role in the investment process among cryptocurrency investors. The results provide practical implications for the regulatory authorities, investors, and academicians.