IDEAS home Printed from https://ideas.repec.org/a/eee/beexfi/v47y2025ics2214635025000784.html
   My bibliography  Save this article

Bias in cryptocurrency investing: The effect of financial and moral considerations

Author

Listed:
  • Shahriari, Hesam
  • Stivers, Adam
  • Tsang, Ming

Abstract

In an experimental investment allocation task, we find that the average participant did not appear to factor cryptocurrency’s social aspects into their allocation decisions based on the average allocation to a cryptocurrency. Moreover, the cryptocurrency’s positive returns did not help to increase investment levels. However, highlighting its high volatility and potential risks was a bigger deterrent to cryptocurrency investing compared to when no such information was provided. We observe an irrational bias toward cryptocurrencies when it is not optimal to do so. We find that younger individuals, those who view cryptocurrencies favorably, and those with past cryptocurrency investing experience are typically more prone to this bias. This was less likely to be the case where descriptive information on either the positive or negative social and environmental impact of cryptocurrencies was provided. Therefore, while highlighting cryptocurrencies’ social/environmental implications does not appear to influence average allocation, it could reduce bias toward cryptocurrencies.

Suggested Citation

  • Shahriari, Hesam & Stivers, Adam & Tsang, Ming, 2025. "Bias in cryptocurrency investing: The effect of financial and moral considerations," Journal of Behavioral and Experimental Finance, Elsevier, vol. 47(C).
    • Handle: RePEc:eee:beexfi:v:47:y:2025:i:c:s2214635025000784
    DOI: 10.1016/j.jbef.2025.101097
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S2214635025000784
    Download Restriction: no
    File URL: https://libkey.io/10.1016/j.jbef.2025.101097?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • G50 - Financial Economics - - Household Finance - - - General
    • G40 - Financial Economics - - Behavioral Finance - - - General
    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:beexfi:v:47:y:2025:i:c:s2214635025000784. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.journals.elsevier.com/journal-of-behavioral-and-experimental-finance .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.