How do warnings affect retail demand for Bitcoin? Evidence from an international survey experiment

Arbeitspapier

Bitcoin is associated with different risks. We conduct an information experiment in the four largest European economies to analyze the effects of specific warnings and information on retail investors' demand for Bitcoin. Our results indicate that the impact is strongest when warnings point to privacy issues. Information on the lack of guarantees or on CO2 emissions only affects particular subgroups. Knowledge of broad public acceptance increases overall demand. Warnings can therefore effectively prevent extreme market events while avoiding the costs of stricter regulation. Effect heterogeneity implies that regulators should use specific information and different communication channels to reach relevant investors.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Hannover Economic Papers (HEP) ; No. 683

Classification and Topics

• Classification: Wirtschaft ; Field Experiments ; Search; Learning; Information and Knowledge; Communication; Belief; Unawareness ; Behavioral Finance: General‡
• Subject: Survey experiment ; warnings ; Bitcoin ; retail demand ; regulation ; cultural differences

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Ebers, Axel ; Thomsen, Stephan L.
• Event: Veröffentlichung
• (who): Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät
• (where): Hannover
• (when): 2021

Further information

• Handle: http://hdl.handle.net/10419/235231
• Last update: 10.03.2025, 11:43 AM CET