Phycological and demographical factors influencing cryptocurrency investment intention with special reference to the western province people in Sri Lanka

Abstract

Introduction: This research investigates the psychological and demographical factors that influence cryptocurrency investment intentions among people in the Western Province of Sri Lanka. The study takes place against the backdrop of a rising trend towards cryptocurrencies amidst a population group that is actively using digital and financial resources. There is a significant knowledge gap regarding cryptocurrency investment in Sri Lanka. Examining what factors affect this gap and how those factors influence it is critical to promoting informed decision-making and responsible participation in the cryptocurrency market.

Methodology: A quantitative research approach was employed, utilizing a structured questionnaire to gather data from 384 respondents in the Western Province. The study examined psychological determinants alongside demographic variables including age, gender, education, and income. Data analysis was conducted using SPSS software to evaluate the relationships between these variables and investment intentions.

Findings: The analysis revealed that psychological factors significantly influence cryptocurrency investment intentions, with perceived trust emerging as the most influential variable. Demographic analysis showed that income and education levels positively correlate with investment intentions, while age demonstrates a negative correlation. Gender was found to have a significant but complex relationship with cryptocurrency adoption patterns.

Conclusion: The study provides valuable insights into cryptocurrency adoption dynamics in Sri Lanka's developing market context. These findings have practical implications for policymakers, financial institutions, and cryptocurrency platforms in developing strategies for promoting responsible investment practices and market development, helping people to invest wisely and supporting the growth of the market.