Acceptance and Penetration of Bitcoin: The Role of Psychological Distance and National Culture

Abstract

Previous studies showed that a number of factors play roles in influencing Bitcoin penetration and acceptance, both at country and individual level, such as trust, perceived risk, security threat, perceived benefit, perceived ease of use, as well as macrotechnological and socioeconomic factors. This present study aimed at finding theoretical models at the macro-and microlevels that are able to explain the penetration and acceptance. Study 1 examined hypotheses on the predictive relationship between national cultural orientation and Bitcoin penetration involving 60 countries. Study 2, using a construal level perspective, tested the predictive strength of psychological distances against Bitcoin acceptance, involving 565 Indonesians (M age = 28.88 years, SD age = 12.482 years). The results showed that national culture of individualism, uncertainty avoidance, and long-term orientation are able to predict the penetration. Spatial/physical distance, social distance, and hypothetical distance are able to predict the acceptance. This research is pivotal in obtaining the fundamental factors of community vulnerability in accepting and endorsing new e-money, i.e. Bitcoin. Monetary policy is expected to consider cultural and psychological factors in intervening against economic-technological disruptive innovations developing among societies.

Blockchain Applications and Sustainability Issues

“…In the choice of this cryptocurrency the socio-cultural aspects that some studies have shown have a determining role. In particular Abraham et al, 2019 analyzed the factors that influence the degree of penetration and acceptance of bitcoin at various individual and collective levels mainly related to the perception and acceptance of risk, the degree of safety and ease of use. Certainly it cannot be omitted that bitcoins generate negative externalities from an environmental point of view due to the inefficient use of energy sources used for the validation of transactions and are often used for non-transparent operations, criminal and illicit aims.…”

Disrupting Money: Psychological Factors of Investment Biases in Cryptocurrency

“…For example, risks can arise from the decentralized exchange of Bitcoin that is not supported by any institution that should have been responsible for regulating the quality and the transaction of the currency, as stated by Abraham et al [4]. Meanwhile on the wallets sectors, cryptocurrency has a digital program with the use of private and public cryptographic keys management, helping the users to store, send, and receive cryptocurrencies [2].…”

“…Responding to the robust phenomenon of cryptocurrency, there are several reasons that underlie why investment behavior of cryptocurrency users are increasing, especially in the young investors. By using the realm of the sociopsychological aspects, Abraham et al [4] explained that there are some sociopsychological factors that affect individuals to invest in cryptocurrencies.…”

Examining The Existence Of Day-Of-Week And Month-Of-Year Anomalies In Bitcoin

“…Apart from these research, Abraham, Sutiksno, Kurniasih, and Warokka (2019) investigated the influence of psychological distance and country culture on Bitcoin acceptance and penetration. The first part of the study, which looked at the predictive relationship between national cultural orientation and Bitcoin adoption in 60 countries, and the second part, which looked at the predictive power of psychological distances against Bitcoin acceptance in 565 Indonesians, found that individualism, uncertainty avoidance, and long-term orientation are all determinants of Bitcoin adoption.…”