Understanding Price Fluctuations of Cryptocurrencies

Abstract

This research project investigated the reasons for price fluctuations of cryptocurrencies. Cryptocurrencies are digital currencies that are created over a decentralised, secure network built on the blockchain technology. The current challenges with understanding price fluctuations are that there is limited research in the field and extreme volatility in the environment. Exploratory research was conducted using semi-structured interviews to understand and analyse the drivers of factors identified in the literature contributing to price fluctuations of cryptocurrencies. Insights were generated for the drivers of user perception, misconceptions that surround cryptocurrency security and the role of regulators in the cryptocurrency space. The research expanded the existing literature and offered propositions for future research that contribute to the theory surrounding price fluctuations of cryptocurrencies. The findings should provoke business and management to reshape the way that cryptocurrencies are received and positioned in the marketplace. In addition, these findings are significant for those making business or social decisions regarding cryptocurrencies or those that are redefining traditional currency transactions.