Bitcoin Mining in Turkey as an Example of Speculative Entrepreneurship

Year 2022, Volume: 51 Issue: 2, 375 - 397, 30.12.2022

Ali Osman Uymaz Ali Esmen

https://doi.org/10.26650/ibr.2022.51.866397

Abstract

The main purpose of this study is to determine the dimensions of speculative entrepreneurship for Bitcoin Turkish miners and to determine the motivational factors to become entrepreneurs in this area. The study was designed as a qualitative study where data was collected from a sample of 13 Bitcoin miners. The collected data thus was analyzed and coded thorough thematic analysis. After determining each participant's profile, a narrative analysis was conducted to ensure the integrity of the research. Some of the key common characteristics thus determined were awareness, arbitrage, and high-profit expectations whereas the self-manipulation feature was determined as low. The key motivation for Participants for investing in Bitcoin was the absence of central management, the beginning of a new financial structure outside the existing system, the opportunity for absolute privacy, and the excessive interest of society, which would serve as a leverage for arbitrage, with high-profit expectation. Bitcoin miners have seen the opportunity of arbitrage with their increased level of awareness and knowledge. As speculative entrepreneurs Bitcoin miners were aware of the extreme nature of the risk investing in Bitcoin to gain highly desirable and expected profit for using the arbitrage opportunity in the existing system.

Keywords

Entrepreneurship, Speculative Entrepreneurship, Arbitrage, Cryptocurrency, Bitcoin Mining.

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