Abstract

Consumer adoption of cryptocurrency is still in its infancy. One impeding factor is that cryptocurrency is a high-risk asset. Owning the currency potentially increases consumers’ financial profile uncertainty. On the contrary, this study argues that cryptocurrency adoption can be a risk management strategy. Prospect theory from a risk perception perspective is used to motivate the argument. A set of six hypotheses based on risk perception and risk management capabilities was developed. This study collected secondary cryptocurrency adoption data from more than 4,600 subjects from 2020 to 2024 in Thailand. The statistical results reveal the effects of generations, economic conditions, and digital financial expertise. The implications include theoretical reassessment of risks associated with high-uncertainty assets and appropriate public education and communication regarding cryptocurrency adoption.

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