Modeling cryptocurrency investment decision: evidence from Islamic emerging market

Abstract

Purpose

Digital currency investment has emerged as a result of global transformation toward technology-driven human lives. In Asia, Malaysia as an Islamic country is one of the early adopters with a high level of awareness on cryptocurrency. This paper aims to investigate the factors affecting the investment decision in cryptocurrency among potential investors in Malaysia.

Design/methodology/approach

Data was collected from 200 individuals aged 18 years and over. The hypotheses were tested using the partial least squares – structural equation modeling technique.

Findings

Results showed that attitude toward risk and perceived behavioral control have a significant positive effect on the investor’s investment decision in cryptocurrency. Interestingly, machine learning forecasting enhances the relationship between perceived benefits and the investment decision in cryptocurrency.

Practical implications

Results benefit investors and practitioners on the significant determinants of investment decision in cryptocurrency in emerging market.

Originality/value

Despite having high volatility and complexity in price determination, and being decentralized, cryptocurrency has managed to attract many investors due to reasons less explored. The outcome of this study extends the theory of planned behavior and confirms the role of machine learning forecasting as a moderator in the context of cryptocurrency investment.

Citation

Veerasingam, N. and Teoh, A.P. (2023), "Modeling cryptocurrency investment decision: evidence from Islamic emerging market", Journal of Islamic Marketing, Vol. 14 No. 7, pp. 1817-1835. https://doi.org/10.1108/JIMA-07-2021-0234