Role of Bitcoin in student’s finances
Haji Farajollah, Kasra (2024)
2024
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2024112730626
https://urn.fi/URN:NBN:fi:amk-2024112730626
Tiivistelmä
This thesis investigates the role of Bitcoin as a savings asset for students, focusing on its poten-tial benefits and risks. Bitcoin, a decentralized digital currency, has emerged as a significant in-vestment option due to its unique attributes, including scarcity and decentralization. However, its adoption among students is shaped by various factors such as knowledge gaps, price volatility, and sustainability concerns.
A mixed-method approach was employed, combining desktop research as secondary data and a structured online survey targeting university students (n=58) as primary data. Research question of this thesis was divided into three key investigative questions, exploring benefits and risks of Bitcoin, its financial performance and the sustainability aspects. The mixed method approach provided a deeper understanding of student’s perspective on Bitcoin investment and contributed to increasing awareness of Bitcoin among students.
The study examined Bitcoin's blockchain technology and its inherent benefits, including scarcity, decentralization, and the potential for high returns, alongside its risks such as volatility and influencing factors on price fluctuations. Findings reveal that while students are attracted to Bitcoin for its potential high returns and independence from traditional financial systems, barriers such as lack of knowledge, fear of financial loss, price volatility, and environmental concerns hinder broader acceptance. The research highlights that addressing these barriers through financial education, risk management strategies, and promoting sustainable practices can enhance Bitcoin's appeal as an investment option. Moreover, integrating principles of Modern Portfolio Theory underscores the importance of diversification in managing Bitcoin's volatility.
This thesis contributes to understanding Bitcoin’s evolving role in student finances, offering practical recommendations for informed investment decisions, and promoting financial literacy. The findings hold implications for students, educators, and financial practitioners aiming to navigate the opportunities and challenges of cryptocurrency investments.
A mixed-method approach was employed, combining desktop research as secondary data and a structured online survey targeting university students (n=58) as primary data. Research question of this thesis was divided into three key investigative questions, exploring benefits and risks of Bitcoin, its financial performance and the sustainability aspects. The mixed method approach provided a deeper understanding of student’s perspective on Bitcoin investment and contributed to increasing awareness of Bitcoin among students.
The study examined Bitcoin's blockchain technology and its inherent benefits, including scarcity, decentralization, and the potential for high returns, alongside its risks such as volatility and influencing factors on price fluctuations. Findings reveal that while students are attracted to Bitcoin for its potential high returns and independence from traditional financial systems, barriers such as lack of knowledge, fear of financial loss, price volatility, and environmental concerns hinder broader acceptance. The research highlights that addressing these barriers through financial education, risk management strategies, and promoting sustainable practices can enhance Bitcoin's appeal as an investment option. Moreover, integrating principles of Modern Portfolio Theory underscores the importance of diversification in managing Bitcoin's volatility.
This thesis contributes to understanding Bitcoin’s evolving role in student finances, offering practical recommendations for informed investment decisions, and promoting financial literacy. The findings hold implications for students, educators, and financial practitioners aiming to navigate the opportunities and challenges of cryptocurrency investments.