A RESEARCH ON THE FACTORS AFFECTING CRYPTOCURRENCY INVESTMENTS WITHIN THE GENDER CONTEXT

Year 2021, , 178 - 189, 31.12.2021

Cagla Gul Senkardes , Ozan Akadur

https://doi.org/10.17261/Pressacademia.2021.1463

Abstract

Purpose- Cryptocurrency, which is one of the first products of blockchain technology, is preferred by more and more actors in addition to
traditional investment tools. One of the factors over demographic and psychological factors that affect the financial investment decisions
of individuals is gender. Although there are many studies in the academic literature on gender-related financial investment decisions, there
is no research and data on cryptocurrencies. In this study, the factors affecting cryptocurrency investments are examined within the
context of gender.
Methodology- Survey model was used as a quantitative research method. With the computer aided survey research conductd in Turkey,
gender-related behavioral and psychological differences in cryptocurrency investments were revealed and the survey findings were
discussed over the information obtained from the literature review.
Findings- With this research, it was seen that the gender factor was associated with both psychological and demographic factors.
Cryptocurrencies are in the top 5 in men's financial investment instruments portfolio while 32.6 percent of women invest in
cryptocurrencies. The level of knowledge about cryptocurrencies, which is effective in investment preferences, is at medium and high level
at the rate of 64 percent for men however 60 percent of women have very limited or no knowledge about this investment tool. The first
two of the factors that affect cryptocurrency investment decisions which are confidence and volatility also differ in terms of rank and
proportion. Age-related cryptocurrency investment preferences do not differ by gender. This study shows that men follow their
investments more frequently than women and do not avoid taking risks.
Conclusion- With this research, gender-based main preference differences in cryptocurrency investments are revealed and an important
resource is provided in this field, which has limited research, and contributes to the literature. It has been observed that women prefer
different investment tools primarily due to lower income and lower level of knowledge about cryptocurrencies. Factors showing similarity
based on gender were also found by this research.

Keywords

Cryptocurrencies, blockchain technology, financial ınvestments, female ınvestors, gender

References

• Alpay, E., Yavuz, M. & Kahyaoğlu, M. (2015). The effect of income status on other socio-economic and demographic factors affecting risk perception. Cumhuriyet University Journal of Economics and Administrative Sciences, 16 (1), 205-226.
• Anbar, A., & Eker, M. (2009). Demographic and socioeconomic factors affecting individual investors' perceptions of financial risk. International Journal of Management, Economics and Business, 5 (9), 129-150.
• Ağıkoglu, R. (1983). Valuation of Bonds in Inflation Environment as a Capital Market Instrument. Anadolu University Publications, No.35.
• Baltaş, A. (2021). The Effect of Gender on Financial Decisions. https://www.acarbaltas.com/ [ Access date: 12.05.2021 ]
• CoinGecko (2021). https://www.coinecko.com/tr [ Accessed on:04.10.2021 ]
• CoinMarketCap (2021). https://coinmarketcap.com/ [ Accessed on:04.10.2021]
• Çeltek, E. (2004). Motivation management. Journal of Industrial Relations and Human Resources, 6 (1), 1-15.
• Deniz, E.A. (2020). Cryptocurrency Applications in Financial Markets: Factors Affecting Cryptocurrency Prices. Master's Thesis. Işık University Institute of Social Sciences. İstanbul.
• Doğan, S. (2020). The transformation of money in the digital age: cryptocurrencies and blockchain technology: a study for university students. Anemon Mus Alparslan University Journal of Social Sciences, 8 (3), 859-870.
• Ecom World. (2021). Kripto paralar neden gerçek para birimleri sayılmıyor https://ecomworld.net/2021/05/26/kripto-paralar-ve-paraningeleneksel-fonksiyonlari/ [ Access date: 22.08.2021]
• Fehr-Duda, H., de Gennaro, M. & Schubert, R. (2006) Gender, Financial Risk, and Probability Weights. Theory of Decision, 60, 283– 313. https://doi.org/10.1007/s11238-005-4590-0
• Google Trends (2021). Cryptocurrency. https://trends.google.com/trends/explore?date=2009-01- 01%2020211008&q=%2Fm%2F0vpj4_b [Accessed on:09.10.2021]
• Gül Şenkardeş, Ç. (2021) Blockchain technology and NFTS: a review on the music industry. Journal of Management, Marketing and Logistics, 8 (3), 154-163.
• Gulec, O. F., Çevik, E., & Bahadır, N. (2018). Examining the relationship between bitcoin and financial indicators. Kırklareli University Faculty of Economics and Administrative Sciences Journal, 7 (2), 18-37.
• Güleç, T.C., & Aktaş, H. (2014). Analysis of efficiency in cryptocurrency markets by testing long memory and varying variance properties. Journal of Eskişehir Osmangazi University Faculty of Economics and Administrative Sciences, 14 (2), 491-510.
• Hallahan, T.A., Faff, R.W., & McKenzie, M.D. (2004). An empirical investigation of personal financial risk tolerance. Financial Services Review, 13, 57-78.
• Hootsuite (2021). Digital 2021 Global Statshot Report. https://www.hoosuite.com/pages/digital-trends-2021 [ Accessed on 17.10.2021 ]
• ILO (2021) World Employment and Social Outlook: Trends 2021. https://www.ilo.org/wcmsp5/ groups/public/---dgreports/---dcomm/--- publ/documents/publication/wcms_795453. pdf [Accessed 12.09.2021]
• Jones, C.P. (1994), Investments Analysis and Management. 4th edition, John Wiley & Sons.
• Kahyaoğlu, M.B. (2011). The role of gender on the level of exposure to various emotional and psychological factors affecting investment decisions: an application on ISE individual stock investors. Journal of Economic and Social Research, 7(1), 7:29-51 29.
• Karafakioğlu, M. (2006). Marketing Principles. Istanbul: Literature Publishing.
• Korniotis, G.M. & Kumar, A. (2011). Do older investors make better investment decisions? The Review of Economics and Statistics, 93 (1), 244-265.
• Nakamoto, S. (2008). Bitcoin: a peer-to-peer electronic cash system. https://bitcoin.org/ bitcoin.pdf [Accessed on 16.09.2021]
• Özdaş, Y. (2009). Investment Incentives Applied in Turkey and A Study in Diyarbakir Region. (Unpublished Master's Thesis) Adana: Çukurova University MoH Institute.
• Özer, N. (2009). Detection and marketing applications. Paradox - Journal of Economics, Sociology and Politics (1), 1-12.
• Pelster, M., Breitmayer, B. & Hasso, T. (2019). Are cryptocurrency traders’ pioneers or just risk-seekers? evidence from brokerage accounts. Economics Letters, 182, 98-100.
• Procházka, D. (2009). The Hicks' Concept of income and its relevancy for accounting purposes. European Financial and Accounting Journal. 4. 37–60. 10.18267/j.efaj.62.
• Statista, (2021) Estimate of overall cryptocurrency market cap per week. https://www.statista.com/statistics/730876/cryptocurrencymaket-value/ [Accessed on 19.09.2021]
• Sütçü, C.S. & Aytekin, C. (2018, July). A study on entrepreneurship levels of social media users related to bitcoin and crypto money. The Turkish Online Journal Of Design, Art And Communication, 8 (3), 466-488.
• Tavşancı, S. & Knitter, E. (2001). Factors affecting consumer's purchasing tendency in food products and packaging. Journal of Muğla University Institute of Social Sciences (3).
• CBRT (2021). Financial Accounts Report, 2021. 1. Quarter.
• https://www.tcmb.gov.tr/wps/wcm/connect/TR/TCMB+TR/Main+Menu/Yayinlar/Raporlar/Finansal+Hesaplar+Raporu/ [Accessed on: 12.09.2021]
• TUIK (2021). Turkish Statistical Institute. Statistics Data Portal. https://data.tuik.gov.tr/Search/Search?text=%C4%B0%C5%9Fg%C3%BCc%C3%BCne%20Kat%C4%B1l%C4%B1m%20Oran%C4%B1 [A ccessed on:29.08.2021]
• Uluyol, O. (2019). Investigation of academicians' recognition of investment instruments and investing in these instruments: Turkey practice. Research Studies Aanatolia Journal, 2 (4),1-20.
• Usul, H., Bekçi, İ. & Eroğlu, A.H. (2002). Socio-economic factors affecting individual investors' acquisition of stocks. Journal of Erciyes University Faculty of Economics and Administrative Sciences (19), July-December, 135-150.
• Ülgen, K. (2010). Electronic Money: Turkey and the World Application. Master's Thesis, İnönü University, Institute of Social Sciences, Department of Economics, Malatya.
• Wang, M., Keller, C. & Siegrist, M. (2011). The less you know, the more you are afraid of - a survey on risk perceptions of investment products, Journal of Behavioral Finance , 12:1, 9-19, doi: 10.1080/15427560.2011.548760
• Yılmaz, F. & Akkaya, G.C. (2020). Efficiency in cryptocurrency markets; day of the week effect: the case of bitcoin and litecoin. Journal of Entrepreneurship, Innovation and Marketing Research, 4 (8), 166-178.
• Yılmaz, N. (2009). The Relationship Between Factors Affecting Investor Behavior and Investment Decisions. Individual-Institutional Investor Differentiation. Master Thesis. Yıldız Technical University.
• Yilmaz, N. K., Hazar, H. (2018). Determining the factors affecting investors’ decision-making process in cryptocurrency investments. PressAcademia Procedia (PAP), V.8, p.5-8.
• Yılmaz, Y. (2007). Legal dimension in cryptology applications. Marmara University Faculty of Law Journal of Legal Studies, 13 (1-2), 137-147