Abstract: Researchers have only recently begun investigating the associations between cryptocurrency and gambling, although the structural similarities of financial speculation and gambling and the risks for transferring harmful behavior from one activity to another have been subject to numerous studies in the past decade. This is noticeable since the societal relevance of cryptocurrencies steadily increases. Based on a survey from 2019, this study analyzed a representative sample of 3864 Germans regarding their cryptocurrency and gambling use. The aim of the study was to determine differentiating factors between sole gamblers, sole cryptocurrency users and users of both as well as to uncover the socioeconomic profiles and behavioral patterns of the latter group. It was found that cryptocurrency users who also gamble are mostly young, male, well-educated and well-off and report significantly higher levels of domain-specific knowledge, ideological motivation and trust-perceptions about cryptocurrency as compared to the other groups. Using cluster analysis, the behavioral patterns of three distinct user groups were revealed, which differ by the intensity of their cryptocurrency involvement across mental, proactive and financial aspects. The observation that a considerable number of this technology-savvy population of users is considered heavy users indicates potential risks of over-involvement. The findings provide researchers and regulators with an improved understanding of the phenomenon of cryptocurrency and the psychological involvement of users.

Abstract: Cryptocurrency markets are still mostly associated with speculation and investment. Accordingly, most surveys to date focus solely on the prevalence of these use cases and the associated user motives while neglecting the wide range of other application areas. These include accessing services, making payments, preserving privacy, or voting on projects’ governance decisions. Based on a representative, cross-sectional survey among 3,864 German citizens, this study discloses the black box of usage patterns by cryptocurrency users (N = 357). Using a generalised distance measure (GDM2) and partitioning around medoids (PAM) method on the frequency of use across eight application domains, three distinct clusters are identified. The clusters differ noticeably in terms of the frequency of accessing services (H(2)=260, p=.00), payments (H(2)=257, p=.00) and voting (H(2)=254, p=.00), which indicates that for certain user groups, speculating and investing are not the major use cases for cryptocurrency. The frequencies across all domains are similar within each of the three clusters, outlining passive investors, all-out activists and moderate conservatives. The findings contribute to research on cryptocurrency adoption, have implications for cryptocurrency regulation and provide the cryptocurrency industry with an improved understanding of their users.

Abstract: A decade after the launch of Bitcoin, cryptocurrencies are maturing from a niche phenomenon and appealing to a broader audience. However, the actual prevalence of cryptocurrency ownership and usage, the users’ socio-demographics, the motives to buy, and the popularity of and knowledge about cryptocurrencies have not been sufficiently researched. Based on a representative online survey among 3864 Germans, we find that 83% of the respondents are aware of the phenomenon, yet the respondents’ self-assessed knowledge about cryptocurrencies and the underlying blockchain technology is limited. 9.2% of the respondents owned cryptocurrencies at the time of the survey; another 9.1% have owned cryptocurrencies in the past. Cryptocurrency users tend to be young, male, well-educated and well-off. Ownership is often associated with long-term investments, and 62% of the respondents state that their ownership is ideologically motivated. The empirical analysis discloses that a major driver of ownership is knowledge about cryptocurrencies, mediated by trust. There is some discrepancy between the actual and perceived usage domains of cryptocurrencies, which reflects the polarization of the phenomenon. The findings have implications for regulators and businesses which are potentially affected by the increasing societal relevance of cryptocurrency.