Investing in cryptocurrencies with information costs

【Author】 Rudys, Valentinas; Svogun, Daniel

【Source】APPLIED ECONOMICS LETTERS

【影响因子】1.287

【Abstract】Life cycle investment models predict much higher participation and investment in cryptocurrencies than found empirically. We reconcile these differences by introducing information costs for cryptocurrency market participation to a standard consumption-investment life cycle model. Only with increasing per-period cryptocurrency market participation costs, are we able to simulate the observed cryptocurrency market participation patterns. The fact that neither fixed entry nor non-increasing per-period costs are able to replicate the survey findings suggests that other reasons, besides information costs, should be considered to explain lower-than-predicted investing in cryptocurrency.

【Keywords】Portfolio allocation; cryptocurrency; investing; life cycle; entry costs

【发表时间】2023 OCT 15 Appl. Econ. Lett.

【收录时间】2023-10-30

【文献类型】实证数据

【主题类别】

区块链治理-市场治理-市场分析