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Article
Publication date: 11 April 2024

Everton Anger Cavalheiro, Kelmara Mendes Vieira and Pascal Silas Thue

This study probes the psychological interplay between investor sentiment and the returns of cryptocurrencies Bitcoin and Ethereum. Employing the Granger causality test, the…

Abstract

Purpose

This study probes the psychological interplay between investor sentiment and the returns of cryptocurrencies Bitcoin and Ethereum. Employing the Granger causality test, the authors aim to gauge how extensively the Fear and Greed Index (FGI) can predict cryptocurrency return movements, exploring the intricate bond between investor emotions and market behavior.

Design/methodology/approach

The authors used the Granger causality test to achieve research objectives. Going beyond conventional linear analysis, the authors applied Smooth Quantile Regression, scrutinizing weekly data from July 2022 to June 2023 for Bitcoin and Ethereum. The study focus was to determine if the FGI, an indicator of investor sentiment, predicts shifts in cryptocurrency returns.

Findings

The study findings underscore the profound psychological sway within cryptocurrency markets. The FGI notably predicts the returns of Bitcoin and Ethereum, underscoring the lasting connection between investor emotions and market behavior. An intriguing feedback loop between the FGI and cryptocurrency returns was identified, accentuating emotions' persistent role in shaping market dynamics. While associations between sentiment and returns were observed at specific lag periods, the nonlinear Granger causality test didn't statistically support nonlinear causality. This suggests linear interactions predominantly govern variable relationships. Cointegration tests highlighted a stable, enduring link between the returns of Bitcoin, Ethereum and the FGI over the long term.

Practical implications

Despite valuable insights, it's crucial to acknowledge our nonlinear analysis's sensitivity to methodological choices. Specifics of time series data and the chosen time frame may have influenced outcomes. Additionally, direct exploration of macroeconomic and geopolitical factors was absent, signaling opportunities for future research.

Originality/value

This study enriches theoretical understanding by illuminating causal dynamics between investor sentiment and cryptocurrency returns. Its significance lies in spotlighting the pivotal role of investor sentiment in shaping cryptocurrency market behavior. It emphasizes the importance of considering this factor when navigating investment decisions in a highly volatile, dynamic market environment.

Details

Review of Behavioral Finance, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1940-5979

Keywords

Article
Publication date: 19 April 2024

Devid Jegerson and Charilaos Mertzanis

In the evolving landscape of global remittances, this study systematically explores cryptocurrency's transformative impact on remittance services through a comprehensive…

Abstract

Purpose

In the evolving landscape of global remittances, this study systematically explores cryptocurrency's transformative impact on remittance services through a comprehensive literature review and bibliometric analysis.

Design/methodology/approach

Through meticulous PRISMA-guided analysis, the research identifies cryptocurrency technology as a pivotal force in enhancing remittance efficiency, reducing costs and broadening access contributing significantly to financial inclusion.

Findings

Findings revealed that cryptocurrency technology could significantly enhance remittance services, offering improved efficiency, reduced costs and increased accessibility. This suggests a transformative potential for financial inclusion, presenting a compelling case for broader adoption and regulatory support to leverage these benefits effectively.

Research limitations/implications

By integrating recent research, this work underlines the urgent need for broader adoption and regulatory support to leverage these benefits effectively. It offers novel insights for institutions and policymakers, highlighting the potential for technology adoption in remittances to enhance financial inclusivity.

Originality/value

More cryptocurrency studies are needed to concentrate on remittance markets. Thus, this investigation constitutes a unique addition to the field. Additional investigation in this domain presents significant possibilities for future exploration and progress.

Details

Management & Sustainability: An Arab Review, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2752-9819

Keywords

Article
Publication date: 22 March 2024

Faisal Al Reshaid, Petek Tosun and Merve Yanar Gürce

Cryptocurrencies are becoming increasingly attractive as alternatives to traditional currencies. Although many retailers accept cryptocurrencies as a means of payment in online…

Abstract

Purpose

Cryptocurrencies are becoming increasingly attractive as alternatives to traditional currencies. Although many retailers accept cryptocurrencies as a means of payment in online shopping, consumers’ cryptocurrency adoption intention in online shopping (CCAI) is still low. This study aims to investigate the influence of attitudes, subjective norms, consumer trust, financial literacy and fear of missing out (FOMO) on CCAI.

Design/methodology/approach

A quantitative research approach was followed using a consumer survey. Hypothesized relationships were tested through regression and mediation analyses.

Findings

The results revealed that consumers could accept cryptocurrencies as a means of payment in online shopping. Attitudes, subjective norms, consumer trust and financial literacy directly and positively influence CCAI, while they indirectly affect CCAI through the mediating impact of FOMO.

Practical implications

Marketing managers should improve consumers’ knowledge about cryptocurrencies and trust in online shopping to increase CCAI. Social media marketing can be appropriate, while the advertising content can address keeping up with others and staying connected.

Originality/value

This study addresses a critical gap in the literature by empirically examining the antecedents of CCAI within an original conceptual model based on the theoretical framework provided by the theory of planned behavior. Attitudes, subjective norms, trust and financial literacy influence CCAI, where FOMO plays a significant role as a mediator.

Details

Digital Policy, Regulation and Governance, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2398-5038

Keywords

Article
Publication date: 13 February 2024

Jitender Kumar and Vinki Rani

This study aims to examine the cryptocurrency adoption (CA) level among Indian retail investors who use cryptocurrency as an investment and mode of transaction.

Abstract

Purpose

This study aims to examine the cryptocurrency adoption (CA) level among Indian retail investors who use cryptocurrency as an investment and mode of transaction.

Design/methodology/approach

Through self-administered survey questionnaires, data is collected from 397 retail investors of Haryana (India). This study adopted a quantitative method using partial least squares structural equation modeling (PLS-SEM).

Findings

This paper offered a robust model with a high explanatory value for CA in which four of the five proposed factors of diffusion of innovation theory (trialability, compatibility, complexity and observability) and one of the two proposed factors of consumer behavioral theory (perceived value) significantly influences CA. More specifically, the absence of regulatory support is a barrier to the broad adoption of cryptocurrencies, as its regulations are necessary to mitigate or minimize uncertain outcomes.

Research limitations/implications

This research primarily focuses on CA in India. Thus, it can be extended to cover diverse other countries for more precise results.

Practical implications

The results provide insights to the government to design the policies, better regulate and make investment strategies that can ultimately enhance CA. In addition, the study’s results also inform financial educators, policymakers, employers and academicians about the significance of several variables affecting CA in India.

Social implications

From a social standpoint, this study is an advance that directs central banks and governments to develop, regulate and manage digital currencies and implement a digital currency ecosystem. Moreover, the results assist in understanding investors’ perceptions and decision-making perspectives toward cryptocurrencies through the country’s digitalization.

Originality/value

This paper fills the study gap to assist policymakers and cryptocurrency experts in broadening their knowledge base and recognizing prioritized intentions. Additionally, this study provides a theoretical model with the latent variable for a present and pertinent matter.

Details

The Bottom Line, vol. 37 no. 1
Type: Research Article
ISSN: 0888-045X

Keywords

Article
Publication date: 2 February 2024

Adriana Tiron-Tudor, Stefania Mierlita and Francesca Manes Rossi

The objective of this study is to systematically review the current body of literature in order to gain insights into the progress of research in accounting and auditing of…

Abstract

Purpose

The objective of this study is to systematically review the current body of literature in order to gain insights into the progress of research in accounting and auditing of cryptocurrencies, while also highlighting the associated risks and identifying gaps for future exploration.

Design/methodology/approach

To achieve this, a structured literature review was carried out, presenting a thorough and critical assessment of the available studies focused on cryptocurrencies within the accounting and auditing domain.

Findings

The analysis reveals that the majority of the research has concentrated on the reporting and measurement aspects of cryptocurrencies, neglecting the auditing aspect. Regarding the methodology, future investigations should incorporate both theoretical and empirical manners to address this gap. Various spheres require further exploration, as they have the potential to significantly impact practitioners and academics.

Originality/value

The significance of this paper lies in its comprehensive examination of the existing literature, synthesizing and organizing information pertaining to accounting and auditing considerations of crypto transactions. Moreover, it provides valuable insights into best practices and prompts identifying avenues for further research in this field.

Details

The Journal of Risk Finance, vol. 25 no. 2
Type: Research Article
ISSN: 1526-5943

Keywords

Article
Publication date: 19 February 2024

Chen Chen

Given the rise of sport non-fungible tokens (NFTs) and sponsorships from cryptocurrency companies in the sport industry during the coronavirus disease 2019 (COVID-19) pandemic…

Abstract

Purpose

Given the rise of sport non-fungible tokens (NFTs) and sponsorships from cryptocurrency companies in the sport industry during the coronavirus disease 2019 (COVID-19) pandemic, this paper aims to critically frame the partnerships between cryptocurrency and sport by exploring the reception of fan tokens amongst supporters of three English Premier League clubs: Manchester City, Everton and Crystal Palace.

Design/methodology/approach

Drawing upon the emerging critical scholarship on cryptocurrency and the political economy of professional football, this study uses digital ethnography in an attempt to understand the major themes emanating from the online forum discussions amongst fans in response to the issuance of fan tokens by the aforementioned three clubs, among other types of partnerships with crypto companies.

Findings

The supporters’ critical deliberations revolved around the contradictions of fan tokens (as a means for supposed “fan engagement” or for financial speculation) and the utility of cryptocurrency for the public. These reactions in turn showcase a larger tension underlying the financially unstable professional football industry: the contest between the owners and the fan bases over the exchange value (for profit) and use value (for community) of the clubs.

Originality/value

This paper is one of the first studies to adopt a critical framework to examine the emerging partnerships between sports and cryptocurrency companies during the COVID-19 pandemic. It also provides one of the first in-depth analyses of the critical receptions of sport NFTs amongst sport fans. While contributing to the literature on fan activism/protest in the context of the commercialization and commodification of sport, the paper also raises new questions on the responsible use of cryptocurrency/NFT in sport.

Details

International Journal of Sports Marketing and Sponsorship, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1464-6668

Keywords

Article
Publication date: 15 January 2024

Susovon Jana and Tarak Nath Sahu

This study is designed to examine the dynamic interrelationships between four cryptocurrencies (Bitcoin, Ethereum, Dogecoin and Cardano) and the Indian equity market…

Abstract

Purpose

This study is designed to examine the dynamic interrelationships between four cryptocurrencies (Bitcoin, Ethereum, Dogecoin and Cardano) and the Indian equity market. Additionally, the study seeks to investigate the potential safe haven, hedge and diversification uses of these digital currencies within the Indian equity market.

Design/methodology/approach

This study employs the wavelet approach to examine the time-varying volatility of the studied assets and the lead-lag relationship between stocks and cryptocurrencies. The authors execute the entire analysis using daily data from 1st October 2017 to 30th September 2023.

Findings

The result of the study shows that financial distress due to the pandemic and the Russian invasion of Ukraine have a negative effect on the Indian equities and cryptocurrency markets, escalating their price volatility. Also, the connectedness between the returns of stock and digital currency exhibits a strong positive relationship during periods of financial distress. Additionally, cryptocurrencies serve as a tool of diversification or hedging in the Indian equities markets during normal financial circumstances, but they do not serve as a diversifier or safe haven during periods of financial turmoil.

Originality/value

This study contributes to understanding the relationship between the Indian equity market and four cryptocurrencies using wavelet techniques in the time and frequency domains, considering both normal and crisis times. This can offer valuable insights into the potential of cryptocurrencies inside the Indian equities markets, mainly with respect to varying financial conditions and investment horizons.

Details

International Journal of Emerging Markets, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1746-8809

Keywords

Article
Publication date: 22 January 2024

Yanqing Wang

The existing literature offers various perspectives on integrating cryptocurrencies into investment portfolios; yet, there is a gap in understanding the behaviours, attitudes and…

Abstract

Purpose

The existing literature offers various perspectives on integrating cryptocurrencies into investment portfolios; yet, there is a gap in understanding the behaviours, attitudes and cross-investment links of individual investors. This study, grounded in the modern portfolio theory and the random walk theory, aims to add empirical insights that are specific to the UK context. It explores four hypotheses related to the influence of socio-demographics, digital adoption, cross-investment behaviours and financial attitudes on cryptocurrency owners.

Design/methodology/approach

This study uses a logistic regression model with secondary data from the Financial Lives Survey 2020 to assess the factors impacting cryptocurrency ownership. A total of 29 variables are used, categorized into four groups aligned with the hypotheses. Additionally, hierarchical clustering analysis was conducted to further explore the cross-investment links.

Findings

The study reveals a significant lack of diversification among UK cryptocurrency investors, a pronounced inclination towards high-risk investments such as peer-to-peer lending and crowdfunding, and parallels with gambling behaviours, including financial dissatisfaction and a propensity for risk-taking. It highlights the influence of demographic traits, risk tolerance, technological literacy and emotional attitudes on cryptocurrency investment decisions.

Originality/value

This study provides valuable insights into cryptocurrency regulation and retail investor protection, underscoring the necessity for tailored financial education and a holistic regulatory approach for investment products with comparable risk levels, with the aim of minimizing regulatory arbitrage. It significantly enhances our understanding of the unique dynamics of cryptocurrency investments within the evolving financial landscape.

Details

Journal of Financial Regulation and Compliance, vol. 32 no. 2
Type: Research Article
ISSN: 1358-1988

Keywords

Article
Publication date: 11 January 2024

Kriti Mehta and Sonia Chawla

The study provides a comprehensive understanding of the issues and illegal activities related to cryptocurrencies and their negative repercussions. This study aims to identify and…

Abstract

Purpose

The study provides a comprehensive understanding of the issues and illegal activities related to cryptocurrencies and their negative repercussions. This study aims to identify and classify cryptocurrency downsides using grounded theory and in-depth interviews. The study also analysed investors’ reluctance to invest in cryptocurrency. This pioneering qualitative study illuminates a deep and multifaceted criminal aspect of cryptocurrency.

Design/methodology/approach

The study conducted in-depth interviews with respondents who have experience and knowledge of cryptocurrency investments. The interviews were recorded and transcribed. The analysis was performed using the NVivo 14 software in the study.

Findings

The study specified two major types of cryptocurrency’s negative aspects: barriers and illegal usage. Barriers to cryptocurrency investment include technological, security, trust, market-related and regulatory reasons. Terrorist funding, money laundering, fraud and ransom payments are all examples of illegal usage. The results of the word cloud analysis are consistent with the overall findings of the survey, which highlighted illegal usage as a prominent negative element of cryptocurrencies. It is a key reason why cryptocurrency is not included in investing portfolios by investors.

Originality/value

The study’s findings provide useful insights for policymakers to develop better methods for successfully mitigating risks and ensuring responsible and sustainable usage of cryptocurrencies. In addition, the study could serve as a stepping stone for more cryptocurrency-related studies, contributing to the development of a more complete and nuanced comprehension of this emergent technology and its societal effects.

Details

Digital Policy, Regulation and Governance, vol. 26 no. 2
Type: Research Article
ISSN: 2398-5038

Keywords

Article
Publication date: 10 January 2024

Swagota Saikia, Alka Maurya and Manoj Kumar Verma

The emergence of cryptocurrencies has tremendously changed the way of financial transactions around the world which has led to form distinct discussions in the field regarding its…

Abstract

Purpose

The emergence of cryptocurrencies has tremendously changed the way of financial transactions around the world which has led to form distinct discussions in the field regarding its reliability. This paper aims to evaluate the published literatures on cryptocurrency identifying its growth, citation, prolific authors, journals, countries, active funding agencies, collaboration pattern and emerging research hotspots in the area.

Design/methodology/approach

Scientometrics and Altmetrics parameters have been incorporated in the study. Literatures covered from the Scopus database searching within “Article Title, Abstract, Keywords” with keywords “cryptocurrency” OR “digital currency” OR “bitcoin” OR “Ethereum” by limiting the time range of 2013–2022, English language and journal articles only. Total 6,107 documents have been identified. The further analysis and visualisation is performed using MSExcel, VOSviewer, Biblioshiny and Tableau. Another tool, Dimension.ai is used to identify the Altmetric Attention Score.

Findings

The findings reveal that the growth of research and citation rate hiked from the year 2017 till now. Elie Bouri is the top contributor, IEEE Access is the most prolific journal, China being the prolific country. Topics like Blockchain, Bitcoin, Ethereum, smart contracts, financial markets are emerging researched hotspots. The reliability of crypto market is still not clear because of its high volatility. The findings of the study will be more useful in the academia, subject specialists, research institutions, funding agencies, publishing agencies in decision-making.

Originality/value

To the best of the authors’ knowledge, there is no such study found considering both Scientometrics and Altmetrics approaches on cryptocurrency research with the selected time bound.

Details

Global Knowledge, Memory and Communication, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2514-9342

Keywords

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