Paper Type

Complete Research Paper

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Digital currencies are a globally spreading phenomenon that is frequntly and also prominently addressed by media, venture capitalists, financial and governmental institutions alike. As exchange prices for Bitcoin have reached multiple peaks within 2013, we pose a prevailing and yet academically unaddressed qustion: What are users' intentions when changing their domestic into a digital currency? In particular, this paper aims at giving empirical insights on whether users´ interest regarding digital currencies is driven by its appeal as an asset or as a currency. Based on our evaluation, we find strong indications that especially uninformed users approaching digital currencies are not primarily interested in an alternative transaction system but seek to participate in an alternative investment vehicle.

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BITCOIN - ASSET OR CURRENCY? REVEALING USERS' HIDDEN INTENTIONS

Digital currencies are a globally spreading phenomenon that is frequntly and also prominently addressed by media, venture capitalists, financial and governmental institutions alike. As exchange prices for Bitcoin have reached multiple peaks within 2013, we pose a prevailing and yet academically unaddressed qustion: What are users' intentions when changing their domestic into a digital currency? In particular, this paper aims at giving empirical insights on whether users´ interest regarding digital currencies is driven by its appeal as an asset or as a currency. Based on our evaluation, we find strong indications that especially uninformed users approaching digital currencies are not primarily interested in an alternative transaction system but seek to participate in an alternative investment vehicle.