A cryptocurrency is a form of digital currency that acts as a medium of exchange. Although many people know about cryptocurrency, only a few are using it. The lack of wider adoption of cryptocurrency is likely to hamper its future growth. Therefore, it is essential to understand factors that shape cryptocurrency adoption decisions. Prior research suggests that existing cryptocurrency adoption studies are fragmented. Therefore, the purpose of this dissertation is to systematically review the existing literature and classify the factors examined in previous studies that influence cryptocurrency adoption using the Push-Pull-Mooring (PPM) framework. The push factors are closely associated with limitations or problems with conventional money or the current financial system, which encourages individuals to move into cryptocurrencies; pull factors are linked with the benefits of adopting cryptocurrency technology. The mooring factors either directly or indirectly hamper or facilitate an individual’s decision towards cryptocurrency adoption. The result of this research is based on 26 journal and conference articles: the review identified three push, ten pull and five mooring factors with 53 different subfactors affecting cryptocurrency adoption. The results suggest that push factors influence people to move away from conventional money to cryptocurrencies. These factors include losing trust in the government, as well as insecurity with conventional money and financial institutions. In addition, the results showed that pull factors, such as the perceived ease of use, perceived usefulness and alternative investment methods, attract people into cryptocurrencies. Finally, this study identified that mooring factors, such as risks, negatively influence the pull factors and adoption of cryptocurrency, while social factors, technological factors and security, positively influence the pull factors. It is also noticed that mooring factors, such as individual factors, directly influence people’s cryptocurrency adoption decisions. This study has both theoretical and practical contributions to the field of technology acceptance in general and cryptocurrency acceptance in particular. From the theoretical perspective, it provides an organising framework based on PPM theory to classify the factors influencing cryptocurrency adoption. From the practical perspective, this study provides knowledge for cryptocurrency stakeholders, such as banks, exchanges and other businesses to develop strategies to encourage people to use cryptocurrencies and for governments to establish policies and support to promote cryptocurrency adoption, and for developers to improve the features of cryptocurrency platforms.
FAQs
Factors Influencing Cryptocurrency Adoption Among Individuals: A Systematic Literature Review? ›
Finally, this study identified that mooring factors, such as risks, negatively influence the pull factors and adoption of cryptocurrency, while social factors, technological factors and security, positively influence the pull factors.
What are the factors of cryptocurrency adoption? ›- 3.1. The legal environment. ...
- 3.2. Governance standards. ...
- 3.3. Democracy level. ...
- 3.4. Human development. ...
- 3.5. GDP level. ...
- 3.6. Income inequality. ...
- 3.7. Education level. ...
- 3.8. Economic freedom.
Factors that influence cryptocurrency includes availability, the supply, the demand, competition, media news and other social factors [4].
What drives cryptocurrency adoption? ›In addition, the paper suggests that the main factors driving the adoption decision revealed from the literature review are the investment opportunity cryptocurrency forms, the anonymity of the transactions and privacy, the acceptance by businesses as a payment method, the fast transfer of funds, the low cost of ...
What are the factors influencing adoption of cryptocurrency based transaction from an Islamic perspective? ›The result of the hypothesis testing indicates that “Behavioral Intention to Use Cryptocurrency from the Islamic perspective” is influenced directly by Shari'ah Compliance, Perceived Ease of Use, Emotionality, Perceived Usefulness, and Financial Concern.
What are the barriers to cryptocurrency adoption? ›- Regulatory uncertainty. Crypto has been gaining traction over the past few years. ...
- Scalability. ...
- Volatility. ...
- Security concerns. ...
- Lack of interoperability. ...
- Limited merchant acceptance. ...
- Lack of education and awareness. ...
- Resistance from traditional financial institutions.
Proposed approach
In the first stage, we employ the TOE framework as the basis for model development and combine it with other relevant factors affecting blockchain adoption. Ultimately, the evaluation factors are derived from the following four aspects: technology, organization, human, and security.
Bitcoin's price is primarily affected by its supply, the market's demand, availability, competing cryptocurrencies, and investor sentiment.
What are the common factors in cryptocurrency? ›We find that three factors – cryptocurrency market, size, and momentum – capture the cross-sectional expected cryptocurrency returns.
What are four factors that could significantly impact on the price of cryptocurrencies? ›As discussed above, these factors may include market demand and supply, market sentiment, growing crypto adoption and use cases, market liquidity, market manipulation, technological developments, etc.
What is the adoption trend for cryptocurrency? ›
Global crypto activity is increasing
Last year, growth in crypto adoption was driven primarily by lower-middle income countries. This year, however, crypto activity increased across countries of all income brackets, with a pullback in high income countries since the beginning of 2024.
Bitcoin is the original cryptocurrency and is still the most well-known. It was created in 2009 and is currently the largest cryptocurrency by market capitalization. Often seen as a way to store value, Bitcoin is seen by many as “digital gold.” It's considered a good investment with a long history of steady growth.
Which country has highest crypto adoption? ›Chainalysis: India Leads Crypto Adoption Despite Regulatory Pressure. Efforts to regulate the cryptocurrency sector have not hurt India's adoption of the digital currency. In fact, the country now leads the world on the 2024 “Global Adoption Index” from blockchain research firm Chainalysis.
Which factors influence the adoption of cryptocurrencies in advanced and developing economies? ›Previous studies stated that perceived factors (usefulness, trust, ease of use, experience), government regulations, and support play a significant role in influencing the intention of the user to adopt cryptocurrency (Wu and Tran, 2018).
What are the factors affecting cryptocurrency? ›- Government regulations: Government regulations can significantly impact the crypto market. ...
- Security Concerns: 2022 alone accounts for over $3Bn worth of losses due to several crypto hacks and scams that have plunged the crypto market.
Findings – The empirical findings reveal that ease of use, perceived usefulness, social influence, and financial literacy increase the willingness to use cryptocurrencies.
What are the factors of cryptocurrency trading? ›The combination of supply, demand, production costs, competition, regulatory developments, and the media coverage that follows influences Bitcoin investor outlook, which is one of the most significant factors affecting cryptocurrency prices.
What factors should be considered when choosing a crypto exchange? ›- Introduction: ...
- Security and Regulation: ...
- Reputation and Track Record: ...
- Supported Crypto-assets: ...
- Liquidity: ...
- User Interface and Experience: ...
- Fees and Charges: ...
- Customer Support: