How do warnings affect retail demand for Bitcoin? Evidence from an international survey experiment

【Author】 Ebers, Axel; Thomsen, Stephan L.

【Source】JOURNAL OF BEHAVIORAL AND EXPERIMENTAL FINANCE

【影响因子】8.222

【Abstract】Bitcoin is associated with different risks. We conduct an information experiment in the four largest European economies to analyze the effects of specific warnings and information on retail investors' demand for Bitcoin. Our results indicate that the impact is strongest when warnings point to privacy issues. Information on the lack of guarantees or on CO2 emissions only affects particular subgroups. Knowledge of broad public acceptance increases overall demand. Warnings can, therefore, effectively prevent extreme market events while avoiding the costs of stricter regulation. Effect heterogeneity implies that regulators should use specific information and different communication channels to reach relevant investors. (C) 2021 Elsevier B.V. All rights reserved.

【Keywords】Survey experiment; Warnings; Bitcoin; Retail demand; Regulation; Cultural differences

【发表时间】2021 DEC

【收录时间】2022-01-01

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