Disrupting Fintech: Key Factors for Adopting Bitcoin

Abstract

Bitcoin is one of the original cryptocurrencies. It was introduced by an anonymous author who goes by the pseudonym of Satoshi Nakamoto (Nakamoto, n.d.). His genius proposal was based on the premise of user anonymity and decentralization (Barber, Boyen, Shi, Uzun, 2012). Bitcoin started out as a payment system among a small group of enthused users and was then mass-adopted. Most users employ it for legal activities such as investments and purchases, while some use it for illegal activities, products, and services like gambling, money laundering, tax evasion, kidnap ransoms, drugs, and prostitution (Kristoufek, 2015). In regard to reasons for using Bitcoin, studies have shown that the majority of Bitcoin owners view it as an investment rather than a currency for purchases or other financial transactions (Henry, Huynh, & Nicholls, 2018; Glaser, Zimmermann, Haferkorn, Weber & Siering, 2014). The purpose of this study was to determine what attracts and motivates consumers to own Bitcoin cryptocurrency and to fill a gap in the academic literature. The findings indicate that there is a strong relationship between owning Bitcoin and a desire for financial profit. This study concludes that the main motivation is of course profit which was driven by both finances and innovative technology led Bitcoin users to mining and installing Bitcoin clients, and then investing and trading afterwards.