Abstract

Background: Cryptocurrencies have gained popularity as businesses and individuals use them for practical and opportunistic reasons. However, the underlying incentives that lead individuals to trade cryptocurrencies remain unclear.

Method: A survey was conducted among 284 individuals in Singapore to investigate the motives for cryptocurrency transactions. This survey was conducted to understand the motives for cryptocurrency transactions. Data were analyzed using fuzzy Set Qualitative Comparative Analysis (fsQCA), which identifies combinations of variables associated with the likelihood of cryptocurrency transactions.

Results: This study identifies six configurations that describe the multifaceted factors influencing cryptocurrency transactions. These configurations include functional affordance, social influence, government regulation, perceived gain, perceived risk, and perceived financial literacy. Each configuration represents a unique profile of cryptocurrency users, including pragmatic strategists, socially guided optimists, risk-cautious contrarians, socially driven trailblazers, bold opportunists, and prudent solo players. These typologies provide a comprehensive overview of the complex cryptocurrency market dynamics.

Conclusion: This study sheds light on the incentives and characteristics of the individuals involved in cryptocurrency transactions. The categorizations created may be helpful to policymakers, practitioners, and other stakeholders seeking to understand the cryptocurrency industry and its impact on society. By fully understanding the underlying dynamics driving cryptocurrency transactions, stakeholders can apply a preemptive approach to anticipate outcomes and design tactical plans to maximize the benefits and minimize the drawbacks of cryptocurrencies.

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