Variables influencing cryptocurrency adoption : an early majority user perspective

Abstract

As consumers demand faster, more flexible, convenient and efficient financial transitions, cryptocurrencies have emerged as a possible solution. South Africa is one of the top adopters of cryptocurrency and has moved into the early majority phase of the technology adoption lifecycle. Although many studies have been done on the early adopter phase, very little is known about the drivers of cryptocurrency adoption for early majority users. This study aims to fill this research gap by using the UTAUT2 technology adoption model theory, which was deemed to be the most applicable model because of its consumer focus. After a critical review of the literature, a conceptual model was built, incorporating multiple constructs relevant to cryptocurrency adoption. Primary survey data was collected, and multiple linear regression was used to analyse the data. The study found facilitating conditions to be the strongest predictor of behavioural intention, followed by performance expectancy, social influence, and finally habit. Habit was also the only and strongest predictor of actual usage. Interestingly, behavioural intention and facilitating conditions were found to be non-significant predictors of actual usage, contrary to many of the previous studies in cryptocurrency adoption. Finally, the study found performance expectancy, facilitating conditions and habit to significantly predict behavioural intention for both early adopters and early majority users.