Details
| Original language | English |
|---|---|
| Article number | 100567 |
| Journal | Journal of Behavioral and Experimental Finance |
| Volume | 32 |
| Early online date | 1 Sept 2021 |
| Publication status | Published - Dec 2021 |
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
- Bitcoin, Cultural differences, Regulation, Retail demand, Survey experiment, Warnings
ASJC Scopus subject areas
- Economics, Econometrics and Finance(all)
- Finance
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In: Journal of Behavioral and Experimental Finance, Vol. 32, 100567, 12.2021.
Research output: Contribution to journal › Article › Research › peer review
}
TY - JOUR
T1 - How do warnings affect retail demand for Bitcoin? Evidence from an international survey experiment
AU - Ebers, Axel
AU - Thomsen, Stephan L.
N1 - Funding Information: We gratefully acknowledge financial support by the Deutsche Bundesbank, Germany. The views and opinions expressed are those of the authors and do not necessarily reflect the official policy of the funding institution. The experiment is registered at the AEA RCT registry and the unique identifying number is: AEARCTR-0006573 (Ebers and Thomsen, 2020).
PY - 2021/12
Y1 - 2021/12
N2 - 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.
AB - 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.
KW - Bitcoin
KW - Cultural differences
KW - Regulation
KW - Retail demand
KW - Survey experiment
KW - Warnings
UR - http://www.scopus.com/inward/record.url?scp=85115289362&partnerID=8YFLogxK
U2 - 10.1016/j.jbef.2021.100567
DO - 10.1016/j.jbef.2021.100567
M3 - Article
AN - SCOPUS:85115289362
VL - 32
JO - Journal of Behavioral and Experimental Finance
JF - Journal of Behavioral and Experimental Finance
SN - 2214-6350
M1 - 100567
ER -