The purpose of this study is to investigate the degree to which people invest in cryptocurrencies and to study their impact on the economy. It identifies the factors that dominate the investment behavior of the individuals in cryptocurrencies, especially during the current economic environment in India. It aims to study how cryptocurrencies have become a preferred tool for investment.
Primary data has been collected using survey method from 300 respondents. Further, using factor analysis variables are categorized in four factors. Karl Pearson’s correlation analysis has been done to investigate the degree of correlation existing between the factors affecting the mass adoption of cryptocurrency, factors important for the mass adoption of cryptocurrency, purpose of using cryptocurrency and the economic factors. Finally, using regression analysis the impact of the above-mentioned parameters on macroeconomic variables like the rate of inflation, unemployment rate, consumption rate and taxation structure has been analyzed.
This study finds that only 16% of the total respondents prefer investing in the cryptocurrencies, whereas majority of the respondents prefer investing in stock market, small savings, and conventional investment techniques. This shows the lack of awareness about investing in cryptocurrencies. The regression analysis suggests that there exists significant relationship between the economic factors and independent variables. But their relationship was Low positively correlated, which means no drastic impact can be found in the economic factors due to the factors and purpose of using cryptocurrencies.
This study adds to the current literature on cryptocurrency, and it resulted in a representation of the scale of cryptocurrency use. The results provide with an initial picture of cryptocurrency’s use, growth, trustworthiness, and future expectations. The research looked at cryptocurrency 118platforms and discovered a slew of difficulties and roadblocks that put the financial system at risk. This study finds that the lack of legislations has exposed the cryptocurrency market to a great deal of risk which discourages the investors. Bringing the right set of regulations in place, can help boost investment in cryptocurrencies.