Speculative investment decisions in cryptocurrency: a structural equation modelling approach

Abstract

ABSTRACT Cryptocurrency markets are inclined towards speculative usage due to the inherent high risk of financial loss and the potential for substantial gains during transaction completion. In response to this phenomenon, this study represents the inaugural effort to explore the influence of variables such as subjective norms, domain knowledge, impulsive investment tendencies, and self-control on decisions related to speculative investments. Utilising structural equation modelling with a dataset of 367 responses in India, the study is the first of its kind. The research reveals that subjective norms and domain knowledge play a significant role in influencing impulsive investment and self-control. Additionally, impulsive investment exhibits significant associations with decisions involving speculative investments. This insight underscores the complexity wherein individuals, despite exercising self-control, may still engage in speculative decisions that lead to adverse consequences. The findings have practical implications for investors and regulators, offering valuable insights into investment behaviours within the cryptocurrency realm.