When Bitcoin was introduced as the first cryptocurrency in 2009, it was celebrated as a new global currency that also offered equal opportunities among genders for investment and usage.
However, after 15 years, it has become evident that this has not been the case. In Norway, where gender equality is generally advanced, the willingness among men to invest in cryptocurrencies remains more than twice as high as that among women.
This is shown in consumer research conducted at the University of Agder (UiA).
Understanding cryptocurrency investments
In a study recently published in the American journal Psychology & Marketing, researchers investigated the attitude towards investing in cryptocurrencies among the adult population in Norway, measured by gender, objective financial knowledge, and personality traits.
One main purpose of the study was to gain a better understanding of the significant differences found when asking who would consider investing in crypto.
“The numbers show that less than 1 in 10 Norwegian consumers are willing to invest in digital currency. Of these, more than twice as many are men compared to women - 12.5% versus 5.64%,” said Professor Ellen Katrine Nyhus (photo) from the School of Business and Law at UiA, who conducted the research along with Postdoctoral Research Fellow Michał Krzysztof Król, Professor Anders Emil Tobias Otterbring, and Darius-Aurel Frank from Aarhus University.
“We have been interested in why this is the case in Norway - and how it can be explained,” Nyhus said.
Psychological mechanisms affect decisions
The researchers focused on various psychological mechanisms that could strengthen or weaken a person’s willingness to invest in cryptocurrencies.
They particularly looked at a combination of different personality traits, including financial self-efficacy and financial overconfidence on one side, and emotional stability, extroversion, curiosity for new things and experiences, agreeableness, and conscientiousness on the other.
Clear differences between men and women
“The first thing that struck us when going through the data was two clear differences between genders regarding financial mastery and financial overconfidence,” Nyhus explained.
Men scored higher for financial mastery, indicating greater confidence in their ability to make financial decisions. While women exhibited higher levels of financial overconfidence, as they believed in their financial knowledge more than the answers to the study’s knowledge questions suggested.
“The second finding was distinct gender differences related to four out of the five personality traits we examined,” Nyhus said.
Men are less social, less agreeable, and less conscientious than women, but score higher on emotional stability.
In contrast, women are more social, more agreeable, and more conscientious than men, but score lower on emotional stability. This is also consistent with other research on personality traits.
Some personality traits weigh more than others
When considering participants’ willingness to invest in cryptocurrencies, the findings show that individuals who score high on financial overconfidence - in other words, women - are more inclined to invest in cryptocurrencies compared to others.
However, at the same time, the research also indicates that individuals who score highest in terms of financial mastery and lowest in personality traits such as agreeableness and conscientiousness - men - are more positive towards investing in cryptocurrencies than others.
No shift in gender patterns
From a gender perspective, the research thus indicates that crypto has not managed to influence or alter traditional gender patterns and stereotypes within the financial investment industry.
“Our findings also indicate that women may need further persuasion or education regarding the benefits and risks of crypto before considering investing in this type of currency,” says Nyhus, who also points out that these are areas of action that companies and marketers in the crypto industry should factor in when devising future marketing initiatives.
“This knowledge can also be crucial for those tasked with regulating financial markets and protecting vulnerable consumers,” she adds.
Source
Crypto cravings: Gender differences in crypto investment intentions and the mediating roles of financial overconfidence and personality. Psychology & Marketing, Wiley online.
By Ellen Katrine Nyhus, Darius-Aurel Frank, Michał Krzysztof Król, Tobias Otterbring
First published: 18 October 2023 https://doi.org/10.1002/mar.21921