Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/235231
Authors: 
Ebers, Axel
Thomsen, Stephan L.
Year of Publication: 
2021
Series/Report no.: 
Hannover Economic Papers (HEP) No. 683
Abstract: 
Bitcoin is associated with different risks. We conduct an information experiment in the four largest European economies to analyze the effects of specific warnings and information on retail investors' demand for Bitcoin. Our results indicate that the impact is strongest when warnings point to privacy issues. Information on the lack of guarantees or on CO2 emissions only affects particular subgroups. Knowledge of broad public acceptance increases overall demand. Warnings can therefore effectively prevent extreme market events while avoiding the costs of stricter regulation. Effect heterogeneity implies that regulators should use specific information and different communication channels to reach relevant investors.
Subjects: 
Survey experiment
warnings
Bitcoin
retail demand
regulation
cultural differences
JEL: 
C93
D83
G40
Document Type: 
Working Paper

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