A recent study from the University of Georgia showed a high correlation between social media use and cryptocurrency investment. The study, published in the International Journal of Bank Marketing, aims to analyze the impact of social media on investors’ behavior toward cryptocurrencies.
Search finished Written by Kyung Tae Kim and Lo Fan, they investigate the relationship between time spent on social media and people’s propensity to invest in cryptocurrencies. The study shows that social media greatly influences investment decisions, including risky decisions such as cryptocurrencies.
Cryptocurrencies are still very popular, although they are characterized by high volatility. This study shows that social media is a key determinant of investor perceptions and behavior. The study also shows that investors who get their information through social media are more likely to invest in cryptocurrencies and view future investment in this area positively.
The role of social media platforms
One of the main insights of the research is the differential impact of different social media platforms on cryptocurrency investment behavior. The study revealed that the likelihood of people investing in cryptocurrencies grows with the number of platforms used. Some platforms seem to be promoting a higher level of trust when it comes to investing, as crypto-related conversations are often enough to sway users.
According to one of the researchers, Lu Fan, the discussion about cryptocurrencies is on the rise, especially with celebrities on social networks. He points out that many people are motivated by the desire to imitate their friends, relatives or even celebrities who are also investing in the same business.
Youth and financial literacy
The study also shows that there is one important pattern among young people. This study showed that young people are not only the main consumers of social media, but also the main investors in cryptocurrencies. However, this group may not be well versed in financial matters, which may make them very sensitive to the influence of social media.
Fan stresses the need for young people, especially those who lack sufficient experience in dealing with money, to be well guided in making the right investment decisions. He points out that although information available on social media can be useful, it can also lead to investment decisions being made based on hype rather than knowledge of the financial markets.
The number of young people investing in cryptocurrencies is increasing every day all over the world. according to My baby, Commodity Futures Trading Regulatory Agency in Indonesia 62% of cryptocurrency investors in Indonesia were between the ages of 18 and 30 as of October 2024. This trend is in line with young people from Indonesia investing in cryptocurrencies, with 26.9% of investors between the ages of 18 and 24. General. 35.1% are between 25-30 years old.
According to a study by Bitget Research, Generation Z and Millennials are becoming more interested in cryptocurrencies. More research Found 20% of Generation Z is the group most targeted by cryptocurrency scams. However, this group is still interested in cryptocurrencies and their opportunities, especially as a means of payment.
Cryptocurrency adoption
This trend is not limited to Asia, where more and more young people are using cryptocurrencies. Telegram-based cryptocurrency communities in Africa have expanded by 189% from the beginning of 2023 to 2024, and more than 56% of their users are under 25 years old.
Younger people in Europe are also participating, with 32% of millennials and 29% of Gen Z investing in cryptocurrencies, according to a 2024 study by Bitpanda and YouGov.
Cryptocurrency adoption is also growing at a faster rate than mobile phones and the internet around the world. According to BlackRock’s Jay Jacobs, it took mobile phones 21 years and the Internet 15 years to attract 300 million users, while cryptocurrencies reached the same number in just 12 years. Bitcoin emerges with a market cap of $2 trillion and continues to lead the industry as demand for decentralized assets grows in the digital economy.
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