What Motivates Investors To Invest In Cryptocurrencies? Essay.

Benefits and Risks of Cryptocurrency Investments

Topic: What factors would motivate customers/investors to invest in Cryptocurrencies

A cryptocurrency is a converted data string that eventually represents itself as a type of currency. It is basically examined by a peer-to-peer link that is also referred to as blockchain (Boonpheng, et al., 2020). Moreover, it is also required to mention that this blockchain also serves as a secure ledger of transactions i.e., transferring, selling and buying. In the current time, a significant rise in terms of investment by customers and investors has been witnessed. Moreover, the major reason which could be concluded for the rise in investment in the case of cryptocurrency is the fact that the amount invested in crypto offers growth in the investment which no other field can offer within such a short period of time (Alqaryouti, et al., 2019).

People investing in cryptocurrency, start investing with their own agenda and thought process. However, the main reason for investing is the huge visible growth. Some people invest with the goal of seeking growth within a limited period of time and count investing in cryptocurrency as a short period investment, while few people think of waiting for the growth for a longer period and thus count investing in cryptocurrency as a long period investment (Anyfantaki, Arvanitis, & Topaloglou, 2021). It is also required to mention that, investing more time I often beneficial for the investors as it eventually offers more time for the cryptocurrency to grow. In addition, one of the most important things to understand about the growth h of cryptocurrency is to understand the impacts of various events occurring across the world over these cryptocurrencies. Moreover, this paper will be a research proposal on the topic “What factors would motivate customers/investors to invest in Cryptocurrencies”. This paper will be informed about the existing literature on the topic, the aims and objectives of the topic, the Research Methodology, and the timeline of the research using the Gannt chart.

Aim

Writing the research paper requires to have a specific aim about the same in order to be focused on a specific concern. Here, in this research proposal as well as the following research, the main aim of the study will be to gather or list the factors which eventually motivate customers as well as investors to invest in cryptocurrency.

Objective

After writing an aim for the research paper, it is required to prepare certain research objectives so that they can help the researcher in achieving the aim of the paper.

• To acknowledge the factors which are considered by the customers as well as investors while investing in cryptocurrency.
• To focus on the facts about how does the value of cryptocurrency increases.
• To acknowledge the factors that eventually influence the value of cryptocurrencies.

According to Chakravaram, (2021), digital currencies are considered to be a great and exciting opportunity for people to invest. However, there are certain risks while investing in cryptocurrencies like market risks, lack of regulations, cyber risks, and tax-based concerns. Regardless of the fact that there are certain risks while investing in cryptocurrency, there are several benefits of investing in cryptocurrencies like it is secure and private, it is decentralized, one can self-govern and self-manage it, and lastly but most importantly, currency transfer has become easier. While investing in cryptocurrency is required investors to be focused on certain considerations in order to make safe and growing investments. Firstly, time is one of the most important considerations, especially the time when you invest. Similarly, McCoy, & Rahimi, (2020), stated that, digital assets are usually extremely volatile, because of which it is very important for the investors to be completely aware of the price or value of the cryptocurrency at the time they are planning to invest. Besides this, it is also required to mention that a continuous focus is always required by the investors, especially because of the reason that cryptocurrency can fall by a significant amount within a few periods of time with little notice.

Factors that Motivate Investors to Invest in Cryptocurrencies

According to Krupka, & Okrenets, 2020), as far as the benefits of investing in cryptocurrency are concerned, one of the best things which easily attracts the people who are seeking to invest their capital is because of the easy access to money transactions. Moreover, there are no or very few charges for investing in cryptocurrency. Besides that, as per Musamih, et al., (2021), another considerable factor that motivates the investors as well as customers to invest is incredible security. As the cryptocurrency is based on blockchain security and cryptography, thus with the help or assistance of such secure forms of payment people feel safe investing here (Boonpheng, et al., 2020). Moreover, the significant growth in the value of invested money plays the role of cherry on the cake. In addition to this, it is also required to mention that, investment in cryptocurrency also offers short settlement times to the investors, because of which if they particularly focus on the changes, significant growth could be achieved within a short period of time. Exponential industry growth is also a considerable factor to motivate the investors or customers to invest in cryptocurrency. According to Smales (2021), for instance, by the time the year 2013, the market of cryptocurrency was $1.6 billion which eventually rose to $1.3 trillion by the year 2021.

Similarly, investing in cryptocurrency also offers the benefits of private transactions. For instance, people generally, use third-party applications for transactions. However, cryptocurrency plays a role of a direct transaction, which eventually helps the people on both sides, as it eventually removes the barrier of third-party applications (Jutla, 2021). It is also required to mention that, cryptocurrency is a sort of asset that has the same value all over the world, because of which it also helps people or the investors to beat the inflation rate. In addition to this, several cryptocurrencies act as a cap over the total number of coins that will ever be minted. As a result, they claim to beat the issue of inflation (Jutla, 2021).

Furthermore, transparency in the case of cryptocurrencies is also a benefit or a factor that eventually helps or encourages the investors and customers to invest in them. In simpler words, the users or the investors can easily see or acknowledge the changes occurring in the market without any barrier, either over online websites or recommended applications. Lastly, security and privacy are also the key factors motivating or encouraging the investors to invest, especially because of the reason that; regardless of the fact that all the data is open and available to all, there is no specific or private information provided over there about anyone. This makes people safe and secure from cyber-attacks and cyber threats.

Research design

While initiating the work for conducting any research, the first step which is needed to be taken is the selection of the research design. Research design is a sort of framework or an approach that eventually helps the researcher in providing a platform or base for performing the required procedures of the research. Generally, there are three types of research design i.e., qualitative research design, quantitative research design, and mixed research design. However, selecting a particular research design for the paper it is required the researcher to study all three types, in order to evaluate which research design will be suitable for the research (Salkind, 2010).

Research Methodology

Firstly, in the case of qualitative research design, the researcher is required to conduct a series of an interview where certain questions will be asked to the participants of the research in order to find the required information for the research. Moreover, the focus of the research implemented under the head of qualitative research design is always on the quality of the data gathered. Lastly, the data gathered here is in the subjective and written format, which is eventually observed and eventually helps in finding the results of the solution (Haven, & Van Grootel, 2019).

The second approach of research design is quantitative research design which is nothing else but an approach that is completely based on the quantity of the response. The research conducts a survey for this approach and gathers information about the same question from multiple numbers of people or participants of the research. Moreover, the data gathered here is in objective and numerical format, which is eventually compared of discussed in order to find the results and conclusion of the research (Rutberg, & Bouikidis, 2018).

Lastly, the third type of research approach is a mixed research design that is nothing else but a mixture of the other two research design approaches.

After going through all three types of research design, the researcher will be working on all the procedures of the following research under the head of quantitative research design. The reason for selecting the type of research design is because of the fact that it will be helping the researcher gather the data from multiple participants or samples. These samples will be selected on the basis of the sampling method which will be described in the further section. In the end, it is also required to mention here that, since the conclusion or result of the research has to be applied to people all over the globe; thus, having multiple samples or participants will be helping in gathering the perspective of people with various characteristics i.e., gender, religion, nationality, illnesses, and health conditions (Boeren, 2018).

After selecting the research design approach, the researcher should start working upon the procedures related to the practice of collection of data. In the case of data collection, as the name suggests, it is a process to gather the required data for the research. There are basically, two types of methods of data collection, i.e., primary and secondary methods of data collection. Here, the researcher will be using both methods, in order to gather the benefits of both of these methods (Couper, 2011).

In the case of the primary method of data collection, the researcher will be conducting a survey with some selected samples and selected participants of the research. Moreover, the data gathered from the data collection method is always the latest and updated with the current time, as the gathered information is taken from real-time people (Hox, & Boeije, 2005). However, the only disadvantage of this method is that data gathered lacks authenticity as there could be chances that this gathered information is not as correct or authentic as we expect it to be (Wilson, & Fox,2013).

Timeline of the Research

Furthermore, in the case of the secondary method of data collection, the information is gathered from previously published papers that are written by certain prominent authors. These selected papers for use in research are generally gathered from various online platforms and libraries. Moreover, such papers include research papers, peer-reviewed articles, journal articles, news articles, and several other papers.

It is the process of gathering the participants in the research survey. Moreover, the samples gathered here are selected on the basis of their relevance to the topic or research objectives. Here, firstly, the researcher will select certainly corporate workplaces, where the researcher asks for the consent of the head and board members for conducting the required survey at their workplace. After having the consent about the same, the researcher needs to select the people for being the participants or samples of the research (Campbell, et al., 2020).  Moreover, since the people which are needed to be selected are not going to be based on any particular field, thus the selection will be based upon the selection criteria known as probability sampling. Thus, it could be said that the samples of the following research will be selected on the basis of probability sampling (Lamm, and Lamm, 2019). Here, selected samples will be asked certain questions related to the concern of the research. Lastly, these questions will be a part of the questionnaire prepared for the research survey earlier. The sample size of this research will be 50.

Data gathered from the data collection method of research methodology is not ready enough to use for evaluating the results and findings of the research. Thus, after the process of data collection, the researcher selects the process of data analysis, her the proper analysis of the collected data is done. In simpler words, with the help of analysis and discussion, this process converts the raw data into valued and authentic data. However, there are several types of data analysis methods such as disclosure data analysis, statistical data analysis, contextual data, and thematic data analysis. Here the researcher will be selecting statistical data analysis, so that with the use of tables, diagrams, and graphs, a researcher can easily evaluate and analyse the gathered data and convert the gathered information into more authentic and valued data (Lengauer, 2020).

Ethics are the standard for any research, which is needed to maintain in order to authentically conduct the entire research. Basically, it is required to maintain the guidelines of the research provided by the university. Furthermore, it is required for the researcher to provide the proper credits to the sources of the research (Suri, 2020). For instance, all the secondary data should be provided with proper authentic, and real citations and intext citations. In addition to this, credits should also be provided to the samples of the research for the data they have provided along with only including the data as per the consent of the samples. Lastly, it should also be taken care that the researcher should not harm any being while conducting the research (Suri, 2020).

References and Bibliography 

Alqaryouti, O., Siyam, N., Alkashri, Z., & Shaalan, K. (2019, December). Cryptocurrency usage impact on perceived benefits and users’ behaviour. In European, Mediterranean, and Middle Eastern Conference on Information Systems (pp. 123-136). Springer, Cham.

Anyfantaki, S., Arvanitis, S., & Topaloglou, N. (2021). Diversification benefits in the cryptocurrency market under mild explosivity. European Journal of Operational Research, 295(1), 378-393.

Boeren, E. (2018). The methodological underdog: A review of quantitative research in the key adult education journals. Adult Education Quarterly, 68(1), 63-79.

Boonpheng, A., Kongsong, W., Kongbenjapuch, K., Pooworakulchai, C., Harnphanich, B., & Roikulcharoen, S. (2020). Benefits of blockchain technology and cryptocurrency for construction engineering management. International Journal of Management (IJM), 11(10).

Campbell, S., Greenwood, M., Prior, S., Shearer, T., Walkem, K., Young, S., ... & Walker, K. (2020). Purposive sampling: complex or simple? Research case examples. Journal of Research in Nursing, 25(8), 652-661.

Chakravaram, V., Ratnakaram, S., Agasha, E., & Vihari, N. S. (2021). Cryptocurrency: Threat or Opportunity. In ICCCE 2020 (pp. 747-754). Springer, Singapore.

Couper, M. P. (2011). The future of modes of data collection. Public Opinion Quarterly, 75(5), 889-908.

Jutla, C. S. (2021). Inflation-Tracking Proof-of-Work Crypto-Currencies. Cryptology ePrint Archive.

Hox, J. J., & Boeije, H. R. (2005). Data collection, primary versus secondary.

Krupka, Y., & Okrenets, V. (2020). Cryptocurrency as an object of accounting and a source of economic benefits. Herald of Economics, (3 (97)), 238-251.

244. Haven, T., & Van Grootel, D. L. (2019). Preregistering qualitative research. Accountability in research, 26(3), 229-244.

Lamm, A.J. and Lamm, K.W., 2019. Using non-probability sampling methods in agricultural and extension education research. Journal of International Agricultural and Extension Education, 26(1), pp.52-59.

Lengauer, T. (2020). Statistical data analysis in the era of big data. Chemie Ingenieur Technik, 92(7), 831-841.

McCoy, M., & Rahimi, S. (2020). Prediction of highly volatile cryptocurrency prices using social media. International Journal of Computational Intelligence and Applications, 19(04), 2050025.

Musamih, A., Jayaraman, R., Salah, K., Hasan, H. R., Yaqoob, I., & Al-Hammadi, Y. (2021). Blockchain-based solution for distribution and delivery of COVID-19 vaccines. Ieee Access, 9, 71372-71387.

Rutberg, S., & Bouikidis, C. D. (2018). Focusing on the fundamentals: A simplistic differentiation between qualitative and quantitative research. Nephrology Nursing Journal, 45(2), 209-213.

Salkind, N. J. (Ed.). (2010). Encyclopedia of research design (Vol. 1). sage.

Smales, L. A. (2021). Volatility spillovers among cryptocurrencies. Journal of Risk and Financial Management, 14(10), 493.

Suri, H. (2020). Ethical considerations of conducting systematic reviews in educational research. Systematic reviews in educational research, 41-54.

Wilson, E., & Fox, A. (2013). Data collection. School-based Research: A guide for education students, 2, 104-125.