Who buys Bitcoin?: The cultural determinants of Bitcoin activity

Sean Foley; B.P.M. Frijns; Alexandre Garel; Tai-Yong Roh

doi:10.1016/j.irfa.2022.102385

Who buys Bitcoin? The cultural determinants of Bitcoin activity

Sean Foley, B.P.M. Frijns^*, Alexandre Garel, Tai-Yong Roh

^*Corresponding author for this work

Research output: Contribution to journal › Article › Academic › peer-review

Abstract

We examine the relationship between national culture and a country's Bitcoin activity. Given that Bitcoin is a high-risk currency/investment that is frequently used for illegal purposes and whose market is relatively opaque, we focus on the cultural dimension of individualism, which has been related to financial market participation, risk-taking behavior, and overconfidence. Using unique data that includes the originating country for Bitcoin transactions, we examine the relationship between individualism and a country's Bitcoin activity for a sample of 80 countries between 2009 and 2020. We find a significant and positive relationship between a country's individualism and its use of Bitcoin consistent with cultural values affecting the demand for such high-risk currency/investments.

Original language	English
Article number	102385
Number of pages	15
Journal	International Review of Financial Analysis
Volume	84
DOIs	https://doi.org/10.1016/j.irfa.2022.102385
Publication status	Published - 1 Nov 2022

Keywords

Bitcoin
Cryptocurrency
Individualism
National culture

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10.1016/j.irfa.2022.102385Licence: CC BY

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title = "Who buys Bitcoin?: The cultural determinants of Bitcoin activity",

abstract = "We examine the relationship between national culture and a country's Bitcoin activity. Given that Bitcoin is a high-risk currency/investment that is frequently used for illegal purposes and whose market is relatively opaque, we focus on the cultural dimension of individualism, which has been related to financial market participation, risk-taking behavior, and overconfidence. Using unique data that includes the originating country for Bitcoin transactions, we examine the relationship between individualism and a country's Bitcoin activity for a sample of 80 countries between 2009 and 2020. We find a significant and positive relationship between a country's individualism and its use of Bitcoin consistent with cultural values affecting the demand for such high-risk currency/investments.",

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author = "Sean Foley and B.P.M. Frijns and Alexandre Garel and Tai-Yong Roh",

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AU - Foley, Sean

AU - Frijns, B.P.M.

AU - Garel, Alexandre

AU - Roh, Tai-Yong

PY - 2022/11/1

Y1 - 2022/11/1

N2 - We examine the relationship between national culture and a country's Bitcoin activity. Given that Bitcoin is a high-risk currency/investment that is frequently used for illegal purposes and whose market is relatively opaque, we focus on the cultural dimension of individualism, which has been related to financial market participation, risk-taking behavior, and overconfidence. Using unique data that includes the originating country for Bitcoin transactions, we examine the relationship between individualism and a country's Bitcoin activity for a sample of 80 countries between 2009 and 2020. We find a significant and positive relationship between a country's individualism and its use of Bitcoin consistent with cultural values affecting the demand for such high-risk currency/investments.

AB - We examine the relationship between national culture and a country's Bitcoin activity. Given that Bitcoin is a high-risk currency/investment that is frequently used for illegal purposes and whose market is relatively opaque, we focus on the cultural dimension of individualism, which has been related to financial market participation, risk-taking behavior, and overconfidence. Using unique data that includes the originating country for Bitcoin transactions, we examine the relationship between individualism and a country's Bitcoin activity for a sample of 80 countries between 2009 and 2020. We find a significant and positive relationship between a country's individualism and its use of Bitcoin consistent with cultural values affecting the demand for such high-risk currency/investments.

KW - Bitcoin

KW - Cryptocurrency

KW - Individualism

KW - National culture

U2 - 10.1016/j.irfa.2022.102385

DO - 10.1016/j.irfa.2022.102385

M3 - Article

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VL - 84

JO - International Review of Financial Analysis

JF - International Review of Financial Analysis

M1 - 102385

ER -

Who buys Bitcoin? The cultural determinants of Bitcoin activity

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Keywords

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