Is the consumer willing to adopt the innovative, blockchain based cryptocurrency Bitcoin as a payment method? The aim of this work is to assess the European consumer’s intention to use Bitcoin for payments.
Bitcoin is not yet defined in many ways. The Role of the consumer is important as consumers play a significant role in technology adoption. In this work, Bitcoin is investigated from the consumer’s perspective as an available innovative payment method.
A literature reviewed allowed characterizing Bitcoin and to outline factors that have an effect on the consumer’s intention to adopt this innovative technology for payments. These factors, compatibility (as in Innovation Diffusion Theory) and perceived risk, were integrated with a theoretical research model (Technology Acceptance Model) and its constructs perceived ease of use, perceived usefulness and behavioral intention, in order to predict the consumer’s intention to use Bitcoin for payments. The proposed model was empirically tested using data collected from a survey of European consumers. The Structural Equation Modeling (SEM) technique was used to evaluate this research model and a Confirmatory Factor Analysis (CFA) was performed to test the reliability and validity of the proposed measurement model.
Table of Contents
1. Introduction
2. Literature review
2.1 Blockchain Technology
2.2 Attributes of Bitcoin and Cryptographic Currency
2.2.1 Mining
2.2.2 Transactions
2.2.3 Anonymity of Bitcoin
2.2.4. Payments and Fintech
2.2.5 Criminal Activity
2.3 User of Bitcoin
2.4 Consumer and Innovation
2.4.1 Adoption of Innovation
2.5 Perceived Benefit
2.6 Perceived Risk
3. Research Methodology
3.1 Theories on technology acceptance
3.2 Research aim and objectives
3.2 Research theoretical model
3.3 Extending TAM
3.4 Hypotheses development
3.5 Research sample
3.6 Data collection Method
3.7 Research Process
3.7.1 Limitations and potential problems
4. Empirical Research
4.1 Research results
4.1.1 Demographic analysis
4.1.2 Descriptive statistics
4.2 Inferential statistics
4.2.1 Hypothesis testing
Research Objectives & Topics
This study aims to assess the factors influencing the European consumer's behavioral intention to use Bitcoin as an innovative payment method. By extending the Technology Acceptance Model (TAM) with additional constructs such as Perceived Risk and Compatibility, the research provides a quantitative analysis of consumer readiness to adopt blockchain-based digital currencies.
- Blockchain technology and its core attributes in the Bitcoin network.
- Consumer attitudes toward innovation and the adoption process.
- Integration of perceived benefits and risks into the Technology Acceptance Model.
- Quantitative assessment of consumer behavioral intention using SEM (Structural Equation Modeling).
- Demographic and usage-based profiling of Bitcoin users versus non-users in Europe.
Excerpt from the Book
2.2.3 Anonymity of Bitcoin
As mentioned before, Bitcoin enables to transfer funds anonymously. As cryptographic Bitcoin address is consisting of unique public keys and private keys. Where public keys can be used openly, and private keys are known only to the owner of adress(wallet) and must kept safe. According to Stallings, W (1999) Public keys function is authentication, or to verify that a paired private key(other address, or transfer input) makes a transfer. And private key’s function is encryption, when only paired private key holder can decrypt the message or amount of funds encrypted with the public keys. (Stallings, W 1999)
This structure enables to make transactions anonymously, because there is no declared identifying information. Also according to Eskandari et al.,(2015) this means that with this method when user holds public keys, and not the bank account information of other user, user actually holds not a currency, but has signing authority over accounts.
Higher level of anonymity in comparison to traditional financial platforms also refers to creating peer-to-peer transactions based on these public user keys. According to Reynolds and Irwin (2017) users are enabled to trade virtual currency regardless of their geographic location and without unveiling their identity, but also whilst hiding sources of their income.
Summary of Chapters
1. Introduction: Outlines the rise of blockchain technology and the significance of Bitcoin as an innovative payment method, setting the research context.
2. Literature review: Analyzes the technical attributes of Bitcoin, its integration with Fintech, consumer behavior regarding innovation, and perceived risk and benefit factors.
3. Research Methodology: Details the theoretical foundation of the study, the extended TAM model, hypothesis development, and the design of the survey instrument.
4. Empirical Research: Presents the findings from the survey of 298 European respondents, including demographic data and the statistical validation of the proposed hypotheses.
Keywords
Bitcoin, Blockchain, Consumer Adoption, Technology Acceptance Model, TAM, Fintech, Perceived Usefulness, Perceived Ease of Use, Perceived Risk, Compatibility, Innovation Diffusion Theory, Behavioral Intention, Cryptocurrency, Digital Payments, European Consumer.
Frequently Asked Questions
What is the primary focus of this research?
The research investigates the acceptance of Bitcoin as an innovative payment method among European consumers, specifically focusing on their behavioral intention to use the technology.
Which theoretical model does the author use?
The author uses the Technology Acceptance Model (TAM) and extends it by incorporating constructs from the Innovation Diffusion Theory (IDT) and Perceived Risk.
What are the key factors affecting Bitcoin adoption?
The study identifies Perceived Usefulness, Compatibility, and Perceived Risk as primary determinants of a consumer's intention to use Bitcoin.
How was the empirical data collected?
Data was collected via an online survey conducted through Amazon's Mechanical Turk (Mturk) platform, reaching 298 participants across 27 European countries.
Does the study conclude that Bitcoin is safe for payments?
While the study recognizes technical safety, it highlights that consumer perception of risk—such as price volatility and legal uncertainty—remains a barrier to adoption.
Who is the typical Bitcoin user according to this study?
Findings suggest that Bitcoin adopters are predominantly men, aged 20-39, who are educated and currently employed.
How does price volatility affect user intention?
The survey results indicate that price volatility is perceived as a significant risk, which negatively influences the consumer's willingness to use Bitcoin for routine payments.
What role does "Compatibility" play in the proposed model?
Compatibility acts as a significant factor in the model, suggesting that consumers are more likely to adopt Bitcoin if they perceive it as consistent with their existing lifestyle and payment habits.
- Quote paper
- Liutauras Rokas (Author), 2019, Is the consumer willing to adopt the innovative cryptocurrency Bitcoin as a payment method?, Munich, GRIN Verlag, https://www.grin.com/document/550906
