IDEAS home Printed from https://ideas.repec.org/a/pal/palcom/v12y2025i1d10.1057_s41599-025-05148-5.html
   My bibliography  Save this article

Bitcoin adoption and price elasticity of demand: cross-country insights

Author

Listed:
  • V. Shiva Sankari

    (Periyar University)

  • R. Kavitha

    (Periyar University)

Abstract

This study investigates the global adoption of Bitcoin by analyzing its price elasticity of demand (PED) across 46 countries or regions, with a focus on the interplay between economic, regulatory, and technological factors. Utilizing robust econometric techniques, including Huber regression, the research identifies significant variations in Bitcoin demand elasticity between developed and developing economies. The findings reveal that developed economies exhibit a mix of elastic and inelastic demand, driven by market maturity and discretionary consumption, while developing economies predominantly demonstrate inelastic demand, reflecting necessity-driven adoption amidst economic constraints. Key determinants of adoption include regulatory frameworks, such as legality, taxation, and anti-money laundering measures, alongside technological readiness indicators like blockchain infrastructure and internet penetration. These results underscore the critical influence of non-price factors on Bitcoin’s adoption dynamics and provide valuable insights for policymakers, investors, and industry stakeholders aiming to balance innovation with market stability. By offering a nuanced understanding of Bitcoin demand, this research contributes to the broader discourse on cryptocurrency adoption and its socioeconomic implications.

Suggested Citation

  • V. Shiva Sankari & R. Kavitha, 2025. "Bitcoin adoption and price elasticity of demand: cross-country insights," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 12(1), pages 1-12, December.
    • Handle: RePEc:pal:palcom:v:12:y:2025:i:1:d:10.1057_s41599-025-05148-5
    DOI: 10.1057/s41599-025-05148-5
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1057/s41599-025-05148-5
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1057/s41599-025-05148-5?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
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Muhammad Farrukh Shahzad & Shuo Xu & Weng Marc Lim & Muhammad Faisal Hasnain & Shahneela Nusrat, 2024. "Cryptocurrency awareness, acceptance, and adoption: the role of trust as a cornerstone," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 11(1), pages 1-14, December.
    2. Ed Saiedi & Anders Broström & Felipe Ruiz, 2021. "Global drivers of cryptocurrency infrastructure adoption," Small Business Economics, Springer, vol. 57(1), pages 353-406, June.
    3. Raphael Auer & Giulio Cornelli & Sebastian Doerr & Jon Frost & Leonardo Gambacorta, 2022. "Crypto trading and Bitcoin prices: evidence from a new database of retail adoption," BIS Working Papers 1049, Bank for International Settlements.
    4. Ahmet Faruk Aysan & Hüseyin Bedir Demirtaş & Mustafa Saraç, 2021. "The Ascent of Bitcoin: Bibliometric Analysis of Bitcoin Research," JRFM, MDPI, vol. 14(9), pages 1-15, September.
    5. Bhimani, Alnoor & Hausken, Kjell & Arif, Sameen, 2022. "Do national development factors affect cryptocurrency adoption?," Technological Forecasting and Social Change, Elsevier, vol. 181(C).
    6. Khaled Mokni & Elie Bouri & Ahdi Noomen Ajmi & Xuan Vinh Vo, 2021. "Does Bitcoin Hedge Categorical Economic Uncertainty? A Quantile Analysis," SAGE Open, , vol. 11(2), pages 21582440211, May.
    7. Don M. Autore & Nicholas Clarke & Danling Jiang, 2021. "Blockchain speculation or value creation? Evidence from corporate investments," Financial Management, Financial Management Association International, vol. 50(3), pages 727-746, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Murray A. Rudd & Dennis Porter, 2025. "Bitcoin Supply, Demand, and Price Dynamics," JRFM, MDPI, vol. 18(10), pages 1-29, October.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Carbó-Valverde, Santiago & Cuadros-Solas, Pedro J. & Rodríguez-Fernández, Francisco, 2025. "Cryptocurrency ownership and cognitive biases in perceived financial literacy," Journal of Behavioral and Experimental Finance, Elsevier, vol. 45(C).
    2. Rzayev, Khaladdin & Sakkas, Athanasios & Urquhart, Andrew, 2025. "An adoption model of cryptocurrencies," European Journal of Operational Research, Elsevier, vol. 323(1), pages 253-266.
    3. Nurcan BAYRAK AKAN & Nildag Basak CEYLAN & Ayhan KAPUSUZOGLU, 2022. "The Future Of Crypto Money In Bitcoin Specification In The World And In Turkey," Scientific Bulletin - Economic Sciences, University of Pitesti, vol. 21(3), pages 13-18.
    4. Nantogmah Danaa & Sampson Vivian Esumamba & Alexander Abeiku Odoom, 2021. "Political Economy of Digital Currency in Africa: stairway to heaven or road to nowhere?," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 5(10), pages 756-767, October.
    5. Sheela Sundarasen & Farida Saleem, 2025. "From Tweets to Trades: A Bibliometric and Systematic Review of Social Media’s Influence on Cryptocurrency," IJFS, MDPI, vol. 13(2), pages 1-18, May.
    6. Karl Oton Rudolf & Samer Ajour El Zein & Nicola Jackman Lansdowne, 2021. "Bitcoin as an Investment and Hedge Alternative. A DCC MGARCH Model Analysis," Risks, MDPI, vol. 9(9), pages 1-22, August.
    7. Di Casola, Paola & Habib, Maurizio Michael & Tercero-Lucas, David, 2023. "Global and local drivers of Bitcoin trading vis-à-vis fiat currencies," Working Paper Series 2868, European Central Bank.
    8. Zdenek Smutny & Zdenek Sulc & Jan Lansky, 2021. "Motivations, Barriers and Risk-Taking When Investing in Cryptocurrencies," Mathematics, MDPI, vol. 9(14), pages 1-22, July.
    9. Sánchez-Pérez, Manuel & Marín-Carrillo, María Belén & Segovia-López, Cristina & Terán-Yépez, Eduardo, 2025. "Bibliometric articles in business and management: Factors affecting production and scholarly impact," Journal of Business Research, Elsevier, vol. 186(C).
    10. Gong, Zheng, 2021. "Can Digital Finance Promote the Technological Innovation of Agricultural Enterprises?—Evidence from NEEQ Companies in China," 2021 ASAE 10th International Conference (Virtual), January 11-13, Beijing, China 329419, Asian Society of Agricultural Economists (ASAE).
    11. Ghaemi Asl, Mahdi & Ben Jabeur, Sami, 2024. "Tail connectedness of DeFi and CeFi with accessible banking pillars: Unveiling novel insights through wavelet and quantile cross-spectral coherence analyses," International Review of Financial Analysis, Elsevier, vol. 95(PB).
    12. Lavan, Thusyanthy & Martin, Brett A.S. & Lim, Weng Marc & Hollebeek, Linda D., 2024. "Social isolation and risk-taking behavior: The case of COVID-19 and cryptocurrency," Journal of Retailing and Consumer Services, Elsevier, vol. 81(C).
    13. Bai, Chunguang & Zhu, Qingyun & Sarkis, Joseph, 2024. "Do blockchain capabilities help overcome supply and operational risks: Insights from firm market returns during COVID-19," Omega, Elsevier, vol. 126(C).
    14. Atree, Manish Kumar & Tripathy, Naliniprava, 2025. "Cryptocurrency research: Bibliometric review and content analysis," International Review of Economics & Finance, Elsevier, vol. 98(C).
    15. Aysan, Ahmet Faruk & Bergigui, Fouad, 2021. "Sustainability, Trust and Blockchain Applications: Best Practices and Fintech Prospects," MPRA Paper 110023, University Library of Munich, Germany.
    16. Gülcihan Aydaner & H. Aydın Okuyan, 2024. "Decentralized finance: a comparative bibliometric analysis in the Scopus and WoS databases," Future Business Journal, Springer, vol. 10(1), pages 1-24, December.
    17. Ahmet F. Aysan & Zhamal Nanaeva, 2022. "Fintech as a Financial Disruptor: A Bibliometric Analysis," FinTech, MDPI, vol. 1(4), pages 1-22, December.
    18. Drăgan, George Bogdan & Ben Arfi, Wissal & Tiberius, Victor & Ammari, Aymen & Khvatova, Tatiana, 2025. "Navigating the green wave: Understanding behavioral antecedents of sustainable cryptocurrency investment," Technological Forecasting and Social Change, Elsevier, vol. 210(C).
    19. Zitis, Pavlos I. & Contoyiannis, Yiannis & Potirakis, Stelios M., 2022. "Critical dynamics related to a recent Bitcoin crash," International Review of Financial Analysis, Elsevier, vol. 84(C).
    20. Arpaci, Ibrahim, 2023. "Predictors of financial sustainability for cryptocurrencies: An empirical study using a hybrid SEM-ANN approach," Technological Forecasting and Social Change, Elsevier, vol. 196(C).

    More about this item

    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:pal:palcom:v:12:y:2025:i:1:d:10.1057_s41599-025-05148-5. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: https://www.nature.com/palcomms/ .

    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.