ACCI Conference 2024

This study aims to investigate the relationships between social media usage and cryptocurrency investment behavior. Using the 2021 National Financial Capability Study (NFCS) main dataset and its supplementary Investor Survey, we analyzed 11 different social media platforms as potential sources of information for investments. The dependent variable is cryptocurrency investment, which encompasses all timeframes, including past, current experiences, and future considerations in cryptocurrency investment. Additionally, we explored the associations of investment knowledge and risk tolerance with cryptocurrency investment. Regression results from the 2021 NFCS reveal that investors who used social media platforms for investment information were more likely to invest in cryptocurrencies. This likelihood increased as the number of social media platforms used also increased. Among the eleven social media platforms studied, YouTube, Reddit, Twitter, and Clubhouse showed positive associations, while Instagram exhibited a negative association with cryptocurrency investment. Additionally, subjective investment knowledge and risk tolerance were positively associated with cryptocurrency investment.

Author(s): Kyoung Tae Kim, Lu Fan