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What Drives Households’ Knowledge about Cryptocurrencies?

Working paper 799
Working Papers

Published: 01 February 2024

Using data from the Dutch Household Survey, we examine what individuals know about cryptocurrencies and how they acquire information about these assets. Our results suggest that higher-educated respondents with a stronger desire to be informed use more different information sources, which results in better knowledge. However, respondents relying on social media or friends for information on cryptocurrencies do not have better knowledge. We also observe that individuals who hold cryptocurrencies are better informed. Furthermore, the longer they own cryptocurrencies, the better knowledge respondents have. Finally, we find that individuals who acquire cryptocurrencies for investment purposes demonstrate a higher level of understanding than those who buy cryptocurrencies for other reasons.

Keywords: cryptocurrencies; general public; information sources; knowledge
JEL codes D12; D14; G11; E41

Working paper no. 799

799 - What Drives Households’ Knowledge about Cryptocurrencies?

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Download 799 - What Drives Households’ Knowledge about Cryptocurrencies?

Reseach highlights

  • Using a survey among more than 2,000 consumers in the Netherlands, we examine the drivers of individuals’ knowledge about cryptocurrencies.
  • Higher-educated individuals or individuals with a stronger desire to be informed use more information sources, leading to greater cryptocurrency knowledge.
  • Not all information sources enhance knowledge; reliance on social media or friends does not improve cryptocurrency understanding.
  • Cryptocurrency owners possess more knowledge than non-owners, and knowledge increases with the duration of ownership and the amount invested.
  • Individuals purchasing cryptocurrencies for investment purposes often demonstrate more knowledge than those buying out of technological interest.

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