The impact of social, economic, cultural, and political variables, as well as the psychological reasons of traders, on the attitude towards investment in the cryptocurrency market from the perspective of Iranian economic actors
Since 2009, the cryptocurrency market has experienced rapid growth and has simultaneously attracted the attention of many investors. The market’s value has risen from zero in 2009 to approximately $2 trillion and around 400 million participants by 2024, reflecting the market’s rapid expansion. Cryptocurrency, as a digital monetary unit or medium of exchange based on the internet, shares similar characteristics with physical money but enables instant and borderless fund transfers. The nature of money, based on the concepts of the digital economy and e-commerce, has shifted from physical to digital form, with new digital currencies transforming business models and bringing about fundamental changes. Given the significant volume of cryptocurrency transactions and the dominance of this phenomenon in financial markets, an in-depth study and examination of this subject appears both necessary and self-evident.
Cryptocurrencies offer numerous advantages for use in the economy, including:
1.Enhanced Security: They rely on cryptographic technology, ensuring secure transactions and preventing theft of bank account data and funds.
2.Privacy Protection: Transactions can be carried out without disclosing personal identity, preserving users’ privacy.
3.High Speed: Financial transactions are processed faster than traditional banking methods.
4.Lower Costs: Transaction fees are generally lower compared to conventional financial systems.
5.Accessibility: Cryptocurrencies are easily accessible to everyone.
6.Cross-Border Transactions: They facilitate faster and easier international trade and financial transactions with less reliance on central banking systems.
7.24/7 Availability: Users can access and manage their funds anytime, anywhere.
The analysis of theoretical findings and interviews using thematic analysis has led to the identification of eight key factors in the development of cryptocurrencies. These components include:
1.Political Factors: Such as political decisions and strategies for circumventing sanctions.
2.Economic Factors: Including inflation control and channeling idle or speculative capital.
3.Social Factors: Such as the growing public demand for investment opportunities and the shortage of skilled professionals in the field.
These dimensions highlight the multifaceted nature of cryptocurrency adoption and development, influenced by both macroeconomic conditions and societal trends.
This study was conducted at Strategic Financial and Economic Technologies Think Tank in collaboration with Hossein Mobini and Maryam Bagherzadeh Sohrabi in 2023.
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