Exploring Cognitive Biases and External Factors in Cryptocurrency Investment Through an Extended Tam Framework
Year: 2025
Type: conference-paper
Study design: Observational Study
Abstract: The growing interest in cryptocurrency investment is driven by the allure of high returns, often amplified by media narratives and technological novelty.However, this enthusiasm frequently overlooks significant risks such as market volatility, fraud, hacking, and regulatory uncertainty.Cognitive biases, including the Ostrich Effect (Galai & Sade, 2003) and Pro-Innovation Bias (Rogers, 1976), distort decision-making.This study investigates the psychological, social, and knowledge-based factors influencing cryptocurrency investment decisions and proposes strategies to mitigate risks through improved financial education.Using an extended Technology Acceptance Model (TAM), the research explores the roles of social influence, financial knowledge, future outlook, along with perceived usefulness and ease of use in shaping investment intentions.The findings highlight that social influence (B = .378,p < .001),financial knowledge (B = .349,p < .001),and optimism about the future of cryptocurrencies (B = .199,p < .001)significantly impact the willingness to invest.Additionally, perceived usefulness (B = .265,p < .001)strongly predicts investment choices, while ease of use (B = .112,p > .05)has a negligible effect.Higher levels of social influence, financial knowledge, and optimism are associated with a stronger intention to invest in cryptocurrencies.These results suggest that targeted financial education can help reduce cognitive biases, promote a better understanding of cryptocurrency risks, and encourage safer investment choices.
Authors: Aboueldahab, A, Moletti, F, Damaschi, G, D'Addario, M
Language: English
Subfield: Information Systems and Management
Field: Decision Sciences
Domain: Social Sciences
Open Access status: bronze
OpenAlex ID: W4410355218