The effect of interest rates on traditional and cryptocurrency investments
Keywords
Loading...
Authors
Issue Date
2022-07-11
Language
en
Journal Title
Journal ISSN
Volume Title
Publisher
Abstract
This paper examines the effect of changes in the interest rate on the behaviour of traditional and cryptocurrency investors. To test whether an increase in the interest rate leads to a decrease in cryptocurrency investments and if this effect is greater for cryptocurrency investors than for traditional investors. In an experiment, participants were divided in a cryptocurrency and traditional asset group and were given four portfolio allocation decisions. Each portfolio allocation decision used a different interest rate and asked to allocate funds between savings against the interest rate and a risky assets, either Bitcoins or AEX stocks. The results display that a change in interest rate does not lead to a change in traditional and cryptocurrency investments. Therefore, there is no difference between traditional and cryptocurrency investors in their reaction on the change of interest rates.
Description
Citation
Supervisor
Faculty
Faculteit der Managementwetenschappen