A new study out of the University of Georgia finds that social media users are more likely to invest in crypto.
The study, published in the International Journal of Bank Marketing, aimed to “investigate the associations between social media usage and cryptocurrency investment behavior.”
“Cryptocurrencies have gained popularity among investors despite their high risk and volatility. Social media wields substantial influence over investors’ attitudes, judgments and decisions related to investment.”
The study, conducted by researchers Kyoung Tae Kim and Lu Fan, claims to be one of the first of its kind.
“This study is one of the initial attempts to examine the role of social media platforms in cryptocurrency investment. The findings offer unique and important theoretical and practical insights for policymakers, researchers and practitioners, which can benefit consumer well-being.”
According to the researchers, the study concluded that social media users are more likely to invest in cryptocurrency.
“Investors who used social media for investment information were more likely to invest in cryptocurrencies and consider investing in cryptocurrencies in the future. The likelihood increased with the number of social media platforms used. Different social media platforms exhibited distinct associations with cryptocurrency investment experiences and future considerations.”
According to researcher Lu Fan, much of the chatter surrounding cryptocurrency originates from and echoes within social media.
“A lot of people talk about cryptocurrency on social media and how popular it has become.
There are a lot of celebrities talking about this. People are thinking, ‘Because my friends, families and the celebrities I admire all invest in that, maybe I should too.”
Fan also highlights a link between youth, social media use, and crypto investments.
“Our study showed that the younger adults are more likely to invest in crypto now, and they’re also the majority users of social media.
So, when serving those young adults who usually need to gain more financial literacy through life experience and age, there needs to be some guidance as well.”
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