Determinants of cryptocurrencies adoption among investors

This study investigated the adoption of cryptocurrency among investors in Malaysia where seven factors from the diffusion of innovation and consumer behaviour theory. The diffusion innovation factors were chosen as possible influencing factors where compatibility, relative advantage, trialability, complexity, and observability were analysed. In addition, consumer behaviour theory was chosen to study ‘perceived risk’ and ‘perceived value’ to understand the investors' motivation to invest in cryptocurrency. With the increasing popularity of cryptocurrency investment worldwide, understanding investors' motivation is crucial, especially given Malaysia's current stance on cryptocurrencies, as a leader in digitalisation and at the same time of rise of crime and fraud, there is a knowledge gap between regulators and organisations or developers (cryptocurrency exchangers) regarding retail investors' intention to adopt cryptocurrency as an investment. The demographics such as age, gender, income, and education of the investors are added as control variable on the adoption of cryptocurrency among investors in Malaysia. A survey questionnaire was developed and distributed to 314 target retail investors across Malaysia who have knowledge in cryptocurrency. The collected data was analysed using structural equation modelling. The results show that demographic factors had no significant effects on the adoption of cryptocurrency. Among the factors identified, it was found that compatibility, trialability, complexity, observability, and perceived value had significant influence on the adoption of cryptocurrency. Only relative advantage and perceived risk showed no significant influence on cryptocurrency adoption. Retail investors' perceptions and influencing factors regarding cryptocurrency investments are reflected in the findings