Anmerkungen:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments January 11, 2023 erstellt
Beschreibung:
Retail consumers in the UK cryptocurrency market exhibit characteristics that should trigger alarm. Using the Financial Conduct Authority Financial Lives 2020 survey data set, I find that approximately three-quarters of cryptocurrency investors can be classified as low-net-worth individuals. They invest more in risky assets and have weak financial resilience towards large losses. I use multivariate logistic regression to study the impact of digital know-how, other investment holdings and financial attitudes towards cryptocurrency ownership. I find that cryptocurrency holding has a strong association with an individual’s high level of comfort with digitalisation, high willingness to take risks and low attachment to known brands. Cryptocurrency investors are associated more with negative emotions, such as distrust of banks and dissatisfaction with their financial status. Both logistic regression and hierarchical clustering analysis evidence strong cross-investment links between cryptocurrency, crowdfunding and peer-to-peer lending. Regulators need to tighten the regulations in this market to improve consumer protection and reduce investor harm. Minimising arbitrage among retail products at a domestic level and regulatory approaches at an international level promote competition