DETERMINING FACTORS THAT INFLUENCE PEOPLE’S DECISIONS TO INVEST IN CRYPTOCURRENCY

Abstract

Cryptocurrencies have gained widespread popularity due to their rising value and lack of interest in being used as a medium of exchange in the long term. However, the cryptocurrency market experienced a collapse in recent times which caused many retail investors to have lost the majority of their assets. Despite the crash that occurred in Cryptocurrency market, there are still many people that hold on to this digital asset. The purpose of this study is to examine the factors that influence people's decision to invest in Cryptocurrency. The independent variables used in this research are attitude, subjective norm, perceived behavioral control, and perceived risk, while dependent variable is investment behavior in Cryptocurrency, and mediating variable will be represented by intention to invest in Cryptocurrency. This quantitative research used data from 327 respondents through online questionnaires and analyzed by using SEM (Structural Equation Modelling). The result shows that attitude, subjective norm, perceived behavioral control, and perceived risk influenced people’s intention to invest in Cryptocurrency. Then, the investment intention influenced the investment behavior in cryptocurrency.