Cryptocurrency Adoption

Introduction

Cryptocurrency is a digital or virtual currency that operates independently of a central bank. It works on a decentralized platform, meaning any single entity, such as a government or financial institution, does not control it. Transactions are verified and recorded on a public ledger called a blockchain, which makes the currency transparent and immutable (Popper, 2015). The first and most well-known cryptocurrency is Bitcoin, created in 2009 by an anonymous person or group using Satoshi Nakamoto’s pseudonym. Since then, thousands of other cryptocurrencies have emerged, including Ethereum, Litecoin, and Ripple.

Cryptocurrencies can be bought and sold on digital exchanges and used to purchase goods and services from merchants who accept them as payment. The value of a cryptocurrency is determined by supply and demand and can be subject to volatility due to its decentralized nature and lack of regulation (Buterin, 2014). It is also often known as “digital money.” In 2009, it was first introduced as a novel kind of monetary exchange.

During the last few years, the Cryptocurrency market and its acceptance have advanced rapidly. Cryptocurrencies rely on cryptography to transmit digital information to guarantee the security and authenticity of transactions. It is believed to be a game-changer for digital money and finance (Pilkington, 2018). The original idea behind cryptocurrency was to create decentralized digital money that could be traded freely between users online, replacing traditional fiat (flat) cash. It takes on some of the most prominent features of currency. According to Eikmanns and Sandner, in their Harvard published papers of 2017, Bitcoin is money since it may be used as a medium of trade, a unit of account, and a store of value.

According to https://www.statista.com, There are now 8685 traded cryptocurrencies, and the total market cap of all cryptocurrencies is $1.18 trillion. A total of $480 billion has been invested in Bitcoin (BTC) as of Jan 2023, giving Bitcoin a market share of 40.55%. From 2023 to 2030, the worldwide cryptocurrency industry is projected to increase from a valuation of $67 trillion at a CAGR (compound annual growth rate) of 66.5% (Statista, 2023). Hence, it is safe to say that the cryptocurrency market has expanded exponentially.

This study aims to fill a gap in the existing literature by investigating “the elements determining the user's desire to embrace cryptocurrency.”

• 1.

  To determine how the awareness model can inspire a change in utility usage for an individual. What are the factors that influence the adoption of cryptocurrency?

• 2.

  To what extent does awareness influence the adoption of cryptocurrency?

• 3.

  How does cryptocurrency awareness differ among different demographic groups worldwide?

• 4.

  What are the implications of this study for future cryptocurrency adoption?

Background

The conceptual idea behind creating cryptocurrency was to create a decentralized and secure system for conducting digital transactions without the need for intermediaries like banks or governments. The founder of Bitcoin, the first and most well-known cryptocurrency, outlined this concept in his white paper published in 2008, stating that “A purely peer-to-peer version of electronic cash would allow online payments to be sent directly from one party to another without going through a financial institution” (Nakamoto, 2008).