How do warnings affect retail demand for Bitcoin? Evidence from an international survey experiment

Axel Ebers and Stephan Thomsen

Journal of Behavioral and Experimental Finance, 2021, vol. 32, issue C

Abstract: Bitcoin is associated with different risks. We conduct an information experiment in the four largest European economies to analyze the effects of specific warnings and information on retail investors’ demand for Bitcoin. Our results indicate that the impact is strongest when warnings point to privacy issues. Information on the lack of guarantees or on CO2 emissions only affects particular subgroups. Knowledge of broad public acceptance increases overall demand. Warnings can, therefore, effectively prevent extreme market events while avoiding the costs of stricter regulation. Effect heterogeneity implies that regulators should use specific information and different communication channels to reach relevant investors.

Keywords: Survey experiment; Warnings; Bitcoin; Retail demand; Regulation; Cultural differences (search for similar items in EconPapers)
JEL-codes: C93 D83 G40 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S2214635021001118

Related works:
Working Paper: How do warnings affect retail demand for Bitcoin? Evidence from an international survey experiment (2021)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:beexfi:v:32:y:2021:i:c:s2214635021001118

DOI: 10.1016/j.jbef.2021.100567

Access Statistics for this article

Journal of Behavioral and Experimental Finance is currently edited by Michael Dowling and Jürgen Huber

More articles in Journal of Behavioral and Experimental Finance from Elsevier
Bibliographic data for series maintained by Catherine Liu ().