How Cryptocurrency Users Survive the Cryptojungle

Cryptocurrency markets have grown substantially in recent years, and have attracted new users and investors, pushing the overall number of owners into the millions. At the same time, the number of distinct cryptocurrencies has exploded to over 5,000. In this burgeoning and chaotic “cryptojungle,” new and unexplored incentives and risks drive the behavior of users and non-users of cryptocurrencies. While previous research has focused almost exclusively on Bitcoin, other cryptocurrencies and utility tokens have been ignored.  Led by LERSSE PhD student Artemij Voskobojnikov, an interview study of cryptocurrency users and non-users focused on their perceptions and management of cryptocurrency risks as well as their reasons for or against involvement with cryptocurrencies.  

Our results suggest that associated risks and mitigation strategies (among other factors) might be specific to a particular crypto-asset and its application area. Further, we identify misunderstandings of both users and non-users that might lead to skewed risk perceptions or dangerous errors. Lastly, we discuss ways of aiding users with managing risks, as well as design implications for coin management tools.

You can find more information in paper presented paper “Surviving the Cryptojungle: Perception and Management of Risk Among North American Cryptocurrency (Non)Users” recently presented at Financial Cryptography 2020. You can also watch the video of the presentation.