Investment attitude of millennials towards cryptocurrencies
Authors: Bhilawadikar Vibha Suhas , Garg Ema 
Published: August 2020

PurposeThis study presents research on the awareness and aspirations of millennials towards different investment asset classes with a special focus on cryptocurrencies. Cryptocurrencies are technology dependent digital money systems which have created a buzz in the financial markets in a very short period of time. Digital currencies like Bitcoin, Ethereum, Ripple, Bitcoin Cash, etc., are considered as a new investment asset category that seems to be associated with high risk and return. There are a number of advantages and disadvantages associated with them, but countries, like Japan and the US, have accepted them for some types of transaction, however, India, one of the five largest emerging economies of 2018, has still not accepted them. In spite of government and regulatory inertia towards cryptocurrencies, we have found that awareness and aspiration to invest in this category among millennials is increasing. The objective of this paper is to understand the investment attitudes of millennial investors towards the desire to invest in cryptocurrencies given the disposition of this generation towards the digital world and technologies.Study designThis study is conducted in Mumbai to assess the interest levels in this category especially among the millennial generation. This is a primary research study and data has been collected via face-to-face interviews, and a structured questionnaire, with suitable open-ended questions, involving 100 millennial retail investors in Mumbai, and a random sampling method. The participants were aware of the risk level of the selected financial products. Descriptive statistics and advance analysis techniques, such as correlation, factor and multiple regression analysis, were used as tools to describe relationships in the investment category, to decipher the pattern of the decision-making process among millennials with respect to investment in different categories of financial products.FindingsThe underlying motivation for any financial investment is growth and appreciation of value at an expected rate of return. It is this motivation that needs to be managed by any financial planner, and this is the foundational finding of our research with respect to cryptocurrencies. This study provides information to regulators, recommending adoption of cryptocurrencies within a regulated structure in India.LimitationsThis study has been conducted in Mumbai only.ImplicationsThe fundamental objective of any investment is a positive return and that positive return has to be well managed by governments, regulators and financial marketers.ContributionThis study presents new evidence given the changes that have occurred recently in the financial markets and also highlights the variables that could be determining factors of risk appetite/tolerance for millennial retail investors. It clearly highlights that financial literacy and maturity of millennial investors will drive interest levels in a particular asset class. Prior knowledge about the level of diffusion and adoption of cryptocurrencies as a new asset among Indian millennials will help in creating a relevant policy framework. This will also help in creating a society-safety network among rising digital communities. This is a potentially transparent technological solution that can facilitate many financial solutions such as investments, remittances, and innovative ways to build financial inclusion in society.