Time horizon and cryptocurrency ownership: Is crypto not speculative?*

【Author】 Bonaparte, Yosef

【Source】JOURNAL OF INTERNATIONAL FINANCIAL MARKETS INSTITUTIONS & MONEY

【影响因子】4.217

【Abstract】This paper shows that households' time horizon influences the propensity to own crypto. In particular, the longer the time horizon, the greater the propensity to own Crypto. Our results are robust even among educated and financially literate households, and using different data sets. We then present a fully rational expectation household life cycle model, and demonstrate that household's time horizon should negatively influence the propensity to own crypto. We examine other explanations, such as, transaction cost (cost variation in learning crypto investment, cheaper for millennials) or the fear of missing out (FOMO) prospects, and find no significant change in the results. Altogether, the empirical and theoretical results suggest that households view Crypto as a pseudo productive/long-term asset class, and not speculative.

【Keywords】Crypto currency; Bitcoin; Speculative asset; Productive asset; Demographics; Saving motive; Sophisticated investor; Social investor

【发表时间】2022 JUL

【收录时间】2022-08-15

【文献类型】实证数据

【主题类别】

区块链治理-市场治理-数字货币