Behavioral Financing and the Adoption of Cryptocurrency in Indonesia

Abstract

The aim of this research is to identify the factors that influence an individual’s financial behavior in the adoption of cryptocurrency. This research is a quantitative study, and the respondents were selected through purposive sampling, of which the following criteria were applied; 1) owning cryptocurrency 2) using cryptocurrency for investment or purchasing needs 3) having a minimum of 3 years of investment experience. A questionnaire was distributed to a total of 121 valid respondents. The research data was processed using SEM-PLS, and from this, it was found that 21 out of 23 questionnaire items were valid. This research found that the adoption of cryptocurrencies can be influenced by several factors; trust and perceived value can improve the adoption of cryptocurrency, while financial literacy and perceived risk do not influence the adoption of cryptocurrency. Also, the moderation of short/long horizon variables is not able to strengthen the influence of perceived risk on adoption.