A recent study from the University of Georgia shows a high correlation between social media use and crypto investment. The study, published in the International Journal of Bank Marketing, aims to analyze the influence of social media on investors’ behaviour towards cryptocurrencies.
Cryptocurrencies remain rather popular, even though they are characterized by high fluctuations. This study demonstrates that social media is one of the key determinants of investors’ perceptions and behaviour. The study also shows that investors who gain their information through social media are likely to invest in cryptocurrencies and view future investment in this area positively.
The role of social media platforms
One of the key insights of the research is the differential effect of different social media platforms on cryptocurrency investment behaviour. The study revealed that the probability of people investing in cryptocurrency grows with the number of platforms used.
Some platforms seem to promote a higher level of confidence when it comes to investing, as conversations regarding cryptocurrency are often enough to sway users.
Youth and financial literacy
The study also shows that there is one significant pattern among young people. This study showed that the younger population is not only the main consumer of social media but also the main investor in cryptocurrencies.
However, this group might not be well informed on financial matters, which may make them very sensitive to social media influence.
Cryptocurrency adoption
This is not a trend that is limited to Asia only, as more and more young people are using cryptocurrencies.
Telegram-based crypto communities in Africa expanded by 189% from the beginning of 2023 to 2024, and over 56% of its users are below 25 years old.
Young people in Europe are also participating, with 32% of Millennials and 29% of Gen Z investing in cryptocurrencies, according to a 2024 study by Bitpanda and YouGov.