Financial Literacy and Attitudes to Cryptocurrencies

81 Pages Posted: 15 Nov 2019

See all articles by Georgios A. Panos

Georgios A. Panos

University of Glasgow - Adam Smith Business School

Tatja Karkkainen

University of Glasgow

Date Written: November 1, 2019

Abstract

We examine the relationship between financial literacy and attitudes to cryptocurrencies, using microdata from 15 countries. Our financial-literacy proxy exerts a large negative effect on the probability of currently owning cryptocurrencies. The financially literate are also more likely to be aware, but not to intend to own cryptocurrencies. We show that the relationships are explained by a different perception of the financial risk involved in cryptocurrencies, vis-à-vis alternative instruments, by the more financially literate. Our findings shed light on the demand for cryptocurrencies and suggest that, apart from parties interested in illegal transactions, and ‘cryptofunds’, it also largely comprises of unsophisticated investors.

Keywords: Financial Literacy, Cryptocurrencies, Attitudes, Bitcoin, Financial Risk

JEL Classification: B26, D18, E41, G11, G53

Suggested Citation

Panos, Georgios A. and Karkkainen, Tatja, Financial Literacy and Attitudes to Cryptocurrencies (November 1, 2019). Available at SSRN: https://ssrn.com/abstract=3482083 or http://dx.doi.org/10.2139/ssrn.3482083

Georgios A. Panos (Contact Author)

University of Glasgow - Adam Smith Business School ( email )

Gilbert Scott Building
University Avenue
Glasgow, Scotland G128QQ
United Kingdom

HOME PAGE: http://https://sites.google.com/site/georgiosapanos/

Tatja Karkkainen

University of Glasgow ( email )

No Address Available

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