Model of Blockchain Resistance in Cryptocurrency Retail Investor

Abstract

The phenomenon of resistance to blockchain technology adoption as an underlying distributed ledger technology independent of cryptocurrency has been widely studied in institutional and auditing contexts, but relatively little attention has been given to its rejection among retail investors. While blockchain is the foundation of cryptocurrencies, paradoxically, some investors exhibit hesitation or resistance toward its broader applications due to perceived risks, uncertainty, and psychological barriers. This paper adapts Innovation Resistance Theory (IRT) to investigate resistance to blockchain among cryptocurrency investors. The research employed a descriptive quantitative approach using primary data collected through questionnaires distributed to auditors working in various public accounting firms. The data were analyzed using the Structural Equation Modeling technique with the Partial Least Squares (SEM-PLS) method to test the hypothesized relationships. The findings highlight that inertia, perceived susceptibility to threats, and threat severity significantly influence resistance. In contrast, threat of data ownership and switching costs appear to have weaker effects. Understanding these barriers is essential for designing better adoption strategies and building investor trust in blockchain ecosystems. Beyond its empirical findings, this study extends IRT by contextualizing psychological and functional barriers within cryptocurrency investment behavior, integrating behavioral finance and technology resistance perspectives.