Bitcoin - Asset or Currency? Revealing Users' Hidden Intentions
ECIS 2014 (Tel Aviv)
14 Pages Posted: 16 Apr 2014 Last revised: 22 May 2015
Date Written: April 15, 2014
Digital currencies are a globally spreading phenomenon that is frequently and also prominently addressed by media, venture capitalists, financial and governmental institutions alike. As exchange prices for Bitcoin have reached multiple peaks within 2013, we pose a prevailing and yet academically unaddressed question: What are users' intentions when changing their domestic into a digital currency? In particular, this paper aims at giving empirical insights on whether users’ interest regarding digital currencies is driven by its appeal as an asset or as a currency. Based on our evaluation, we find strong indications that especially uninformed users approaching digital currencies are not primarily interested in an alternative transaction system but seek to participate in an alternative investment vehicle.
Keywords: Bitcoin, Decision Making in Electronic Markets, Digital Currency, Investor Behavior, Virtual Currency
JEL Classification: G00, G10, G11
Suggested Citation: Suggested Citation