Paper ID
2482
Paper Type
short
Description
Cryptocurrency and blockchain technology have attracted interest in a variety of applications across many industries. Understanding end-user perception of risk will assist in understanding user behavior and help to facilitate the adoption of blockchain services such as cryptocurrency. This understanding becomes more timely with the recent announcement of the cryptocurrencies Facebook Libra and Telegram Gram. Based on theories from behavioral decision science and previous studies in e-Commerce, we developed measures for risk perception, proposed hypotheses to compare risk perception using cryptocurrency with those in other domains, and designed experimental scenarios to relate risk perception to choices of using cryptocurrency. Our preliminary empirical study suggests that risk perception is of the same magnitude as online risk in e-Commerce but different from those in social and financial situations. Upon further empirical validation, we expect to gain a better understanding of user risk perception and attitude towards using cryptocurrency.
Recommended Citation
Chen, Li-Chiou and Farkas, Daniel, "Individual Risk Perception and Choice using Cryptocurrency for Transactions" (2019). ICIS 2019 Proceedings. 10.
https://aisel.aisnet.org/icis2019/blockchain_fintech/blockchain_fintech/10
Individual Risk Perception and Choice using Cryptocurrency for Transactions
Cryptocurrency and blockchain technology have attracted interest in a variety of applications across many industries. Understanding end-user perception of risk will assist in understanding user behavior and help to facilitate the adoption of blockchain services such as cryptocurrency. This understanding becomes more timely with the recent announcement of the cryptocurrencies Facebook Libra and Telegram Gram. Based on theories from behavioral decision science and previous studies in e-Commerce, we developed measures for risk perception, proposed hypotheses to compare risk perception using cryptocurrency with those in other domains, and designed experimental scenarios to relate risk perception to choices of using cryptocurrency. Our preliminary empirical study suggests that risk perception is of the same magnitude as online risk in e-Commerce but different from those in social and financial situations. Upon further empirical validation, we expect to gain a better understanding of user risk perception and attitude towards using cryptocurrency.