 Time horizon and cryptocurrency ownership: Is crypto not speculative?Yosef Bonaparte Journal of International Financial Markets, Institutions and Money, 2022, vol. 79, issue C Abstract: This paper shows that households’ time horizon influences the propensity to own crypto. In particular, the longer the time horizon, the greater the propensity to own Crypto. Our results are robust even among educated and financially literate households, and using different data sets. We then present a fully rational expectation household life cycle model, and demonstrate that household’s time horizon should negatively influence the propensity to own crypto. We examine other explanations, such as, transaction cost (cost variation in learning crypto investment, cheaper for millennials) or the fear of missing out (FOMO) prospects, and find no significant change in the results. Altogether, the empirical and theoretical results suggest that households view Crypto as a pseudo productive/long-term asset class, and not speculative. Keywords: Crypto currency; Bitcoin; Speculative asset; Productive asset; Demographics; Saving motive; Sophisticated investor; Social investor (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:intfin:v:79:y:2022:i:c:s1042443122000877 DOI: 10.1016/j.intfin.2022.101609 Access Statistics for this article Journal of International Financial Markets, Institutions and Money is currently edited by I. Mathur and C. J. Neely More articles in Journal of International Financial Markets, Institutions and Money from Elsevier |
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