Cryptocurrency Investment Risks and Perceived Usefulness: Basis of Cryptocurrency Risk Management Plan
DOI:
https://doi.org/10.31098/jgrcs.v4i1.2295Keywords:
Cryptocurrency; Perceived Investment Risks; Perceived UsefulnessAbstract
The surging popularity of cryptocurrencies presents both opportunities and challenges. While some view it as the future of finance, others remain concerned about investment risks. This uncertainty creates difficulties for consumers and financial institutions. To address this gap, the study assessed consumer perceptions of cryptocurrency investment risks and perceived usefulness, aiming to identify new avenues for transactions and investments. Employing a quantitative descriptive approach, a survey was conducted among 150 individuals from two (2) cities in the Philippines using a validated instrument and the Technological Acceptance Model (TAM). Results showed that consumers perceived moderate risk across trust, privacy, security, and financial aspects. No significant demographic variations were found in risk perception or perceived usefulness. These findings suggest a generally positive consumer attitude toward cryptocurrency investment despite the risks. This implies the possibility of widespread adoption if expectations align with the technology’s actual capabilities. Ultimately, this study offers valuable insights into consumer decision-making, which can inform future risk management strategies in the cryptocurrency landscape. It focuses on a geographically under-researched population (Philippines). This research contributes valuable insights for policymakers and industry leaders developing strategies to promote responsible cryptocurrency adoption across diverse user groups, particularly in emerging markets.
Downloads
References
Abramova, S., Voskobojnikov, A., Beznosov, K., & Böhme, R. (2021). Bits Under the Mattress: Understanding Different Risk Perceptions and Security Behaviors of Crypto-Asset Users. Proceedings of the 2021 CHI Conference on Human Factors in Computing Systems. https://doi.org/10.1145/3411764.3445679
Alaeddin, O., & Altounjy, R. (2018) International Journal of Engineering & Technology: Trust, technology awareness and satisfaction effect into the intention to use cryptocurrency among generation Z in Malaysia. https://www.researchgate.net/profile/Rana- Altounjy/publication/329268583_Trust_Technology_Awareness_and_Satisfaction_Effect_i nto_the_Intention_to_Use_Cryptocurrency_among_Generation_Z_in_Malaysia/links/5bffa6 d4a6fdcc1b8d4a6122/Trust-Technology-Awareness-and-Satisfaction-Effect-into-the- Intention-to-Use-Cryptocurrency-among-Generation-Z-in-Malaysia.pdf
Almajali D., Masa’Deh R., Dahalin Z. (2022, July 27) Taylor&Francis Online: Factors influencing the adoption of cryptocurrency in Jordan: An application of the extended TRA model https://www.tandfonline.com/doi/epdf/10.1080/23311886.2022.2103901?needAccess
=true&role=button
AL-MANSOUR, B. Y. (2020). Cryptocurrency Market: Behavioral Finance Perspective. The Journal of Asian Finance, Economics and Business, 7(12), 159–168. https://doi.org/10.13106/jafeb.2020.vol7.no12.159
Alomari, A. S. A., & Abdullah, N. L. (2023). Factors influencing the behavioral intention to use Cryptocurrency among Saudi Arabian public university students: Moderating role of financial literacy. Cogent Business & Management, 10(1). https://doi.org/10.1080/23311975.2023.2178092
Assessment of Risks to Financial Stability from Crypto-assets. (2022). https://www.fsb.org/wp- content/uploads/P160222.pdf
Arias-Oliva M., Pelegrin B., J & Matias-Clavero, G. (2019, March 18) Frontiers: Variables Influencing Cryptocurrency use: A Technology Acceptance Model in Spain https://www.frontiersin.org/articles/10.3389/fpsyg.2019.00475/full
Changing Cryptocurrency Perceptions: An Experimental Study. (n.d.). https://www.modul.ac.at/uploads/files/Theses/Bachelor/Undergrad_2021/BSC_2021/1 821007_GORBUNOV_Evgenii_Thesis_BSc.pdf
Cheah, E.-T., Mishra, T., Parhi, M., & Zhang, Z. (2018). Long Memory Interdependency and Inefficiency in Bitcoin Markets. Economics Letters, 167, 18–25. https://doi.org/10.1016/j.econlet.2018.02.010
Cohen, J., & Wronski, L. (2021, August 30). Cryptocurrency investing has a big gender problem. CNBC. https://www.cnbc.com/2021/08/30/cryptocurrency-has-a-big-gender-problem.html
Conti, M., Sandeep Kumar, E., Lal, C., & Ruj, S. (2018). A Survey on Security and Privacy Issues of Bitcoin. IEEE Communications Surveys & Tutorials, 20(4), 3416–3452. https://doi.org/10.1109/comst.2018.2842460
Del, R., Lopez, G., Administration, S., Taiwan, & Shih, W. (n.d.). Analysis of the Purchase Intension of Bitcoin by Applying the Technology Acceptance Model. Review of Integrative Business and Economics Research, 12(1).
http://buscompress.com/uploads/3/4/9/8/34980536/riber_12-1_02_m21-401_21- 39.pdf
Francisco, R., Ubaldo, J.E., & Rodelas, N. (2022). The perception of Filipinos on the advent of cryptocurrency and non-fungible token (NFT) games. International Journal of Computing Sciences Research, 6, 1005-1018. doi: 10.25147/ijcsr.2017.001.1.89
GeeksforGeeks. (2020, May 8). Advantages and Disadvantages of Cryptocurrency in 2020. GeeksforGeeks. https://www.geeksforgeeks.org/advantages-and-disadvantages-of- cryptocurrency-in-2020/
Intel | The Rise of Cryptocurrency Exposes New Risks, Liabilities. (n.d.). Burns & Wilcox. Retrieved May 11, 2023, from https://www.burnsandwilcox.com/insights/the-rise-of- cryptocurrency-exposes-new-risks-liabilities/
Jariyapan, P., Mattayaphutron, S., Gillani, S. N., & Shafique, O. (2022). Factors Influencing the Behavioural Intention to Use Cryptocurrency in Emerging Economies During the COVID-19 Pandemic: Based on Technology Acceptance Model 3, Perceived Risk, and Financial Literacy. Frontiers in Psychology, 12. https://doi.org/10.3389/fpsyg.2021.814087
Mendoza-Tello, J. C., Mora, H., Pujol-Lopez, F. A., and Lytras, M. D. (2018) ResearchGate: Social commerce as a driver to enhance trust and intention to use cryptocurrencies for electronic payments https://www.researchgate.net/publication/327768082_Social_Commerce_as_a_Driver_to
_Enhance_Trust_and_Intention_to_Use_Cryptocurrencies_for_Electronic_Payments
Nadeem M A., Liu Z., Pitafi A H., Younis A., Xu Y., (2021) Sage Publications: Investigating the Adoption Factors of Cryptocurrencies—A Case of Bitcoin: Empirical Evidence from China
Nibley, B. (2021, September 28). 12 Benefits of Cryptocurrency in 2021. SoFi. https://www.sofi.com/learn/content/benefits-of-crypto/
Ogel S and Ogel I, (2021, May 21) Emerald Insight: The interaction between perceived risk, attitude and intention to use: An imperical Study on Bitcoin as a Crypto Currency https://www.emerald.com/insight/content/doi/10.1108/978-1-80043-968- 920211012/full/html
Oliva M., Borondo J., Clavero G., (2019 March) Research Gate: Variables Influencing Cryptocurrency Use: A technology acceptance model in Spain https://www.researchgate.net/figure/Proposed-theoretical-model-for-the-intention-to- use-cryptocurrencies_fig1_331848541
Palos-Sanchez, P., Saura, J. R., & Ayestaran, R. (2021). An Exploratory Approach to the Adoption Process of Bitcoin by Business Executives. Mathematics, 9(4), 355. https://doi.org/10.3390/math9040355
Phadtare, M. (2019, February 6). Philippines: Cryptocurrency in Philippines. Regtechtimes.com. https://regtechtimes.com/new-crypto-currency-regulations-in-philippines/
Philippines Now Has 16 Cryptocurrency Exchanges Approved by Central Bank | Exchanges Bitcoin News. (2020, July 23). Bitcoin News. https://news.bitcoin.com/philippines-16- cryptocurrency-exchanges-approved-central-bank/
Pongratz, N. (2022, April 11). More Women Investing in Crypto, Proving Superior to Men, Says Recent Study. BeInCrypto. https://beincrypto.com/more-women-investing-in-crypto-proving- superior-to-men-says-recent-study/
Radivojac G & Grujic M. (2019, June 2) Academia: Future of Cryptocurrencies and blockchain technology in Financial Markets. https://www.academia.edu/39211850/Future_of_cryptocurrencies_and_blockchain_tech nology_in_financial_markets
Royandoyan R. (2022, January 28) PhilStar Global: Crypto dealings carry risk for ASEAN banks – Fitch https://www.philstar.com/business/crypto/2022/01/28/2157000/crypto- dealings-carry-risk-asean-banks-fitch
Sagheer N., K., Fahd S., Mahmood S., Rashid T., Jamil H. (2022, June 3) Frontiers: Factors Affecting Adaptability of Cryptocurrency: An application of Technology Acceptance Model https://www.frontiersin.org/articles/10.3389/fpsyg.2022.903473/full
Sauro, J. (2019, May 7). MeasuringU: 10 Things to Know about the Technology Acceptance Model.
Measuringu.com. https://measuringu.com/tam/
Severs C. (2021, August 27) Linkedin: Does Age Matter in (Crypto) Investing? https://www.linkedin.com/pulse/does-age-matter-crypto-investing-chris- severs?trk=articles_directory
Smutny, Z., Sulc, Z., & Lansky, J. (2021). Motivations, Barriers and Risk-Taking When Investing in Cryptocurrencies. Mathematics, 9(14), 1655. https://doi.org/10.3390/math9141655
Sukarno K and Pujiyono (2020). Research Gate: Atlantis Press: The use of cryptocurrency as a payment instrument.
https://www.researchgate.net/publication/340509110_The_Use_of_Cryptocurrency_as_a
_Payment_Instrument
Sukumaran, S., Bee, T. S., & Wasiuzzaman, S. (2022). Cryptocurrency as an Investment: The Malaysian Context. Risks, 10(4), 86. https://doi.org/10.3390/risks10040086
Taherdoost, H. (2016). Validity and Reliability of the Research Instrument; How to Test the Validation of a Questionnaire/Survey in a Research. International Journal of Academic Research in Management (IJARM)
Yulianti M.D., Pusparini E.S. (2020) Atlantis Press: The Effect of Perceived Usefulness and Perceived Ease of Use on Affective Commitment and Actual Usage of the Flexible Benefit System: The Mediating Role of Individual Absorptive Capacity
Yuneline M (2019, May 6) Emerald Insight: Analysis of cryptocurrency’s characteristics in four perspectives https://www.emerald.com/insight/content/doi/10.1108/JABES-12-2018- 0107/full/htmlAbramova, S., Voskobojnikov, A., Beznosov, K., & Böhme, R. (2021). Bits Under the Mattress: Understanding Different Risk Perceptions and Security Behaviors of Crypto-Asset Users. Proceedings of the 2021 CHI Conference on Human Factors in Computing Systems. https://doi.org/10.1145/3411764.3445679
Alaeddin, O., & Altounjy, R. (2018) International Journal of Engineering & Technology: Trust, technology awareness and satisfaction effect into the intention to use cryptocurrency among generation Z in Malaysia. https://www.researchgate.net/profile/Rana- Altounjy/publication/329268583_Trust_Technology_Awareness_and_Satisfaction_Effect_i nto_the_Intention_to_Use_Cryptocurrency_among_Generation_Z_in_Malaysia/links/5bffa6 d4a6fdcc1b8d4a6122/Trust-Technology-Awareness-and-Satisfaction-Effect-into-the- Intention-to-Use-Cryptocurrency-among-Generation-Z-in-Malaysia.pdf
Almajali D., Masa’Deh R., Dahalin Z. (2022, July 27) Taylor&Francis Online: Factors influencing the adoption of cryptocurrency in Jordan: An application of the extended TRA model https://www.tandfonline.com/doi/epdf/10.1080/23311886.2022.2103901?needAccess
=true&role=button
AL-MANSOUR, B. Y. (2020). Cryptocurrency Market: Behavioral Finance Perspective. The Journal of Asian Finance, Economics and Business, 7(12), 159–168. https://doi.org/10.13106/jafeb.2020.vol7.no12.159
Alomari, A. S. A., & Abdullah, N. L. (2023). Factors influencing the behavioral intention to use Cryptocurrency among Saudi Arabian public university students: Moderating role of financial literacy. Cogent Business & Management, 10(1). https://doi.org/10.1080/23311975.2023.2178092
Assessment of Risks to Financial Stability from Crypto-assets. (2022). https://www.fsb.org/wp- content/uploads/P160222.pdf
Arias-Oliva M., Pelegrin B., J & Matias-Clavero, G. (2019, March 18) Frontiers: Variables Influencing Cryptocurrency use: A Technology Acceptance Model in Spain https://www.frontiersin.org/articles/10.3389/fpsyg.2019.00475/full
Changing Cryptocurrency Perceptions: An Experimental Study. (n.d.). https://www.modul.ac.at/uploads/files/Theses/Bachelor/Undergrad_2021/BSC_2021/1 821007_GORBUNOV_Evgenii_Thesis_BSc.pdf
Cheah, E.-T., Mishra, T., Parhi, M., & Zhang, Z. (2018). Long Memory Interdependency and Inefficiency in Bitcoin Markets. Economics Letters, 167, 18–25. https://doi.org/10.1016/j.econlet.2018.02.010
Cohen, J., & Wronski, L. (2021, August 30). Cryptocurrency investing has a big gender problem. CNBC. https://www.cnbc.com/2021/08/30/cryptocurrency-has-a-big-gender-problem.html
Conti, M., Sandeep Kumar, E., Lal, C., & Ruj, S. (2018). A Survey on Security and Privacy Issues of Bitcoin. IEEE Communications Surveys & Tutorials, 20(4), 3416–3452. https://doi.org/10.1109/comst.2018.2842460
Del, R., Lopez, G., Administration, S., Taiwan, & Shih, W. (n.d.). Analysis of the Purchase Intension of Bitcoin by Applying the Technology Acceptance Model. Review of Integrative Business and Economics Research, 12(1).
http://buscompress.com/uploads/3/4/9/8/34980536/riber_12-1_02_m21-401_21- 39.pdf
Francisco, R., Ubaldo, J.E., & Rodelas, N. (2022). The perception of Filipinos on the advent of cryptocurrency and non-fungible token (NFT) games. International Journal of Computing Sciences Research, 6, 1005-1018. doi: 10.25147/ijcsr.2017.001.1.89
GeeksforGeeks. (2020, May 8). Advantages and Disadvantages of Cryptocurrency in 2020. GeeksforGeeks. https://www.geeksforgeeks.org/advantages-and-disadvantages-of- cryptocurrency-in-2020/
Intel | The Rise of Cryptocurrency Exposes New Risks, Liabilities. (n.d.). Burns & Wilcox. Retrieved May 11, 2023, from https://www.burnsandwilcox.com/insights/the-rise-of- cryptocurrency-exposes-new-risks-liabilities/
Jariyapan, P., Mattayaphutron, S., Gillani, S. N., & Shafique, O. (2022). Factors Influencing the Behavioural Intention to Use Cryptocurrency in Emerging Economies During the COVID-19 Pandemic: Based on Technology Acceptance Model 3, Perceived Risk, and Financial Literacy. Frontiers in Psychology, 12. https://doi.org/10.3389/fpsyg.2021.814087
Mendoza-Tello, J. C., Mora, H., Pujol-Lopez, F. A., and Lytras, M. D. (2018) ResearchGate: Social commerce as a driver to enhance trust and intention to use cryptocurrencies for electronic payments https://www.researchgate.net/publication/327768082_Social_Commerce_as_a_Driver_to
_Enhance_Trust_and_Intention_to_Use_Cryptocurrencies_for_Electronic_Payments
Nadeem M A., Liu Z., Pitafi A H., Younis A., Xu Y., (2021) Sage Publications: Investigating the Adoption Factors of Cryptocurrencies—A Case of Bitcoin: Empirical Evidence from China
Nibley, B. (2021, September 28). 12 Benefits of Cryptocurrency in 2021. SoFi. https://www.sofi.com/learn/content/benefits-of-crypto/
Ogel S and Ogel I, (2021, May 21) Emerald Insight: The interaction between perceived risk, attitude and intention to use: An imperical Study on Bitcoin as a Crypto Currency https://www.emerald.com/insight/content/doi/10.1108/978-1-80043-968- 920211012/full/html
Oliva M., Borondo J., Clavero G., (2019 March) Research Gate: Variables Influencing Cryptocurrency Use: A technology acceptance model in Spain https://www.researchgate.net/figure/Proposed-theoretical-model-for-the-intention-to- use-cryptocurrencies_fig1_331848541
Palos-Sanchez, P., Saura, J. R., & Ayestaran, R. (2021). An Exploratory Approach to the Adoption Process of Bitcoin by Business Executives. Mathematics, 9(4), 355. https://doi.org/10.3390/math9040355
Phadtare, M. (2019, February 6). Philippines: Cryptocurrency in Philippines. Regtechtimes.com. https://regtechtimes.com/new-crypto-currency-regulations-in-philippines/
Philippines Now Has 16 Cryptocurrency Exchanges Approved by Central Bank | Exchanges Bitcoin News. (2020, July 23). Bitcoin News. https://news.bitcoin.com/philippines-16- cryptocurrency-exchanges-approved-central-bank/
Pongratz, N. (2022, April 11). More Women Investing in Crypto, Proving Superior to Men, Says Recent Study. BeInCrypto. https://beincrypto.com/more-women-investing-in-crypto-proving- superior-to-men-says-recent-study/
Radivojac G & Grujic M. (2019, June 2) Academia: Future of Cryptocurrencies and blockchain technology in Financial Markets. https://www.academia.edu/39211850/Future_of_cryptocurrencies_and_blockchain_tech nology_in_financial_markets
Royandoyan R. (2022, January 28) PhilStar Global: Crypto dealings carry risk for ASEAN banks – Fitch https://www.philstar.com/business/crypto/2022/01/28/2157000/crypto- dealings-carry-risk-asean-banks-fitch
Sagheer N., K., Fahd S., Mahmood S., Rashid T., Jamil H. (2022, June 3) Frontiers: Factors Affecting Adaptability of Cryptocurrency: An application of Technology Acceptance Model https://www.frontiersin.org/articles/10.3389/fpsyg.2022.903473/full
Sauro, J. (2019, May 7). MeasuringU: 10 Things to Know about the Technology Acceptance Model.
Measuringu.com. https://measuringu.com/tam/
Severs C. (2021, August 27) Linkedin: Does Age Matter in (Crypto) Investing? https://www.linkedin.com/pulse/does-age-matter-crypto-investing-chris- severs?trk=articles_directory
Smutny, Z., Sulc, Z., & Lansky, J. (2021). Motivations, Barriers and Risk-Taking When Investing in Cryptocurrencies. Mathematics, 9(14), 1655. https://doi.org/10.3390/math9141655
Sukarno K and Pujiyono (2020). Research Gate: Atlantis Press: The use of cryptocurrency as a payment instrument.
https://www.researchgate.net/publication/340509110_The_Use_of_Cryptocurrency_as_a
_Payment_Instrument
Sukumaran, S., Bee, T. S., & Wasiuzzaman, S. (2022). Cryptocurrency as an Investment: The Malaysian Context. Risks, 10(4), 86. https://doi.org/10.3390/risks10040086
Taherdoost, H. (2016). Validity and Reliability of the Research Instrument; How to Test the Validation of a Questionnaire/Survey in a Research. International Journal of Academic Research in Management (IJARM)
Yulianti M.D., Pusparini E.S. (2020) Atlantis Press: The Effect of Perceived Usefulness and Perceived Ease of Use on Affective Commitment and Actual Usage of the Flexible Benefit System: The Mediating Role of Individual Absorptive Capacity
Yuneline M (2019, May 6) Emerald Insight: Analysis of cryptocurrency’s characteristics in four perspectives https://www.emerald.com/insight/content/doi/10.1108/JABES-12-2018- 0107/full/html
Downloads
Article Metrics
- 0 times
- 0 times
Published
Citation Check
How to Cite
Issue
Section
License
Copyright (c) 2024 John Michael J. Zamoras, Sheila S. Dalumpines, Joseph G. Refugio
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
Content Licensing, Copyright, and Permissions
1. License
Journal of Governance Risk Management Compliance and Sustainability (JGRCS) has CC-BY NC or an equivalent license as the optimal license for the publication, distribution, use, and reuse of scholarly work for non-commercial purpose. The non-commercial use of the article will be governed by the Creative Commons Attribution license as currently displayed on Creative Commons Attribution-NonCommercial 4.0 International License
Creative Commons License
2. Author’s Warranties
The author warrants that the article is original, written by stated author(s), has not been published before, contains no unlawful statements, does not infringe the rights of others, is subject to copyright that is vested exclusively in the author and free of any third party rights, and that any necessary written permissions to quote from other sources have been obtained by the author(s).
3. User Rights
Journal of Governance Risk Management Compliance and Sustainability (JGRCS) objective is to disseminate articles published are as free as possible. Under the Creative Commons license, this journal permits users to copy, distribute, display, and perform the work for non-commercial purposes only. Users will also need to attribute authors and this journal on distributing works in the journal.
4. Rights of Authors
Authors retain the following rights:
Copyright, and proprietary rights relating to the article, such as patent rights,
The right to use the substance of the article in future own works, including lectures and books, The right to reproduce the article for own purposes, The right to self-archive the article, the right to enter into separate, additional contractual arrangements for the non-exclusive distribution of the article's published version (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal (Journal of Governance Risk Management Compliance and Sustainability).
The author has a non-exclusive publishing contract with a publisher and the work is published with a more restrictive license, the author retains all the rights to publish the work elsewhere, including commercially, because she/he is not subject to the conditions of her / his own license, regardless of the type of CC license chosen.
5. Co-Authorship
If the article was jointly prepared by other authors, the signatory of this form warrants that he/she has been authorized by all co-authors to sign this agreement on their behalf, and agrees to inform his/her co-authors of the terms of this agreement.
6. Termination
This agreement can be terminated by the author or Journal of Governance Risk Management Compliance and Sustainability (JGRCS) upon two months’ notice where the other party has materially breached this agreement and failed to remedy such breach within a month of being given the terminating party’s notice requesting such breach to be remedied. No breach or violation of this agreement will cause this agreement or any license granted in it to terminate automatically or affect the definition of Journal of Governance Risk Management Compliance and Sustainability (JGRCS).
7. Royalties
This agreement entitles the author to no royalties or other fees. To such extent as legally permissible, the author waives his or her right to collect royalties relative to the article in respect of any use of the article by This agreement can be terminated by the author or Journal of Governance Risk Management Compliance and Sustainability (JGRCS) upon two months’ notice where the other party has materially breached this agreement and failed to remedy such breach within a month of being given the terminating party’s notice requesting such breach to be remedied. No breach or violation of this agreement will cause this agreement or any license granted in it to terminate automatically or affect the definition of Journal of Governance Risk Management Compliance and Sustainability (JGRCS) or its sublicensee.
8. Miscellaneous
Journal of Governance Risk Management Compliance and Sustainability (JGRCS) will publish the article (or have it published) in the journal if the article’s editorial process is successfully completed and Journal of Governance Risk Management Compliance and Sustainability or its sublicensee has become obligated to have the article published. Journal of Governance Risk Management Compliance and Sustainability may conform the article to a style of punctuation, spelling, capitalization, referencing and usage that it deems appropriate. The author acknowledges that the article may be published so that it will be publicly accessible and such access will be free of charge for the readers
