Chapter IV Discussion and Conclusion (PDF)

**CHAPTER IV** **DISCUSSION AND CONCLUSION** This chapter analyzes the data collected from the survey, providing insights into students' views on cryptocurrency. The discussion covers trends in demographics, attitudes toward cryptocurrency, and what these findings might mean for understanding what...

**CHAPTER IV** **DISCUSSION AND CONCLUSION** This chapter analyzes the data collected from the survey, providing insights into students' views on cryptocurrency. The discussion covers trends in demographics, attitudes toward cryptocurrency, and what these findings might mean for understanding what influences cryptocurrency adoption among students in Davao City. 4.1 Implications of the Findings of the Study ============================================= The demographic profile of respondents shows that most are young adults, primarily between 21 and 23 years old, with a slight majority of male students (57.8%) over female students (42.2%). This age group aligns with the typical college-age population of third year students, which may reflect an openness to exploring new financial tools like cryptocurrency. The students come from a wide range of academic programs, though the largest groups are in BS Tourism Management, BS Nursing, and BS Psychology. This diversity in fields suggests that interest or potential awareness of cryptocurrency spans various disciplines, particularly those connected to business, finance, or technology. Most respondents receive a monthly allowance between P4,001 and P5,000, indicating moderate financial resources that may influence their willingness to engage with investments like cryptocurrency. Interestingly, 84% of the respondents are non-users of cryptocurrency, which could imply limited interest, awareness, or perceived accessibility of digital assets among these students. *Tendency to take risk* The research shows that most participants have a generally positive view on taking risks with cryptocurrency investments, showing a strong interest in exploring new and potentially profitable financial opportunities. Many find cryptocurrency appealing, viewing it as an exciting way to improve their financial situation (Smutny et al., 2021). At the same time, despite their excitement, respondents also show a sense of caution. While they are interested in the possibilities that cryptocurrency brings, they often choose not to invest a large part of their money in it. This caution may come from recognizing other financial responsibilities they have and the unpredictable nature of cryptocurrency markets. This finding supports Tzavara\'s research, which points out that people can sometimes be drawn to risky investments, aware of the potential for financial loss, highlighting the balance between excitement and careful decision-making in investment choices. Additionally, respondents understand the risks connected to cryptocurrency. They recognize both the potential rewards of the market and its instability. This mixture of cautious optimism reflects their effort to weigh potential benefits against possible risks. *Barriers to investment in cryptocurrency* The data shows that respondents see several major obstacles to investing in cryptocurrency, highlighting their concerns about the risks and uncertainties associated with this digital currency. They are cautious about investing because of the unpredictable and volatile nature of cryptocurrency markets, where values can change dramatically in a short time. This instability, especially when compared to traditional currencies or assets, raises concerns and makes many hesitant to invest their money. Research by Corbet et al. (2019) and Li et al. (2021) supports this view, pointing out that the unpredictable nature of cryptocurrency and its lack of a tangible asset base both contribute to its volatility, which in turn makes potential investors wary. Another significant barrier is the limited acceptance of cryptocurrency by merchants, which makes respondents less likely to see it as a practical option for everyday transactions. Vítor et al. (2019) highlight how accessibility issues, such as the limited availability of cryptocurrency services in certain areas and financial barriers that exclude some people from participating, further slow down its adoption. Since cryptocurrency is not widely recognized for buying goods or services, respondents feel it lacks usability, which diminishes its attractiveness as a long-term investment choice. Even though cryptocurrency might seem interesting, it does not offer enough practical value for everyday use, especially for students. Additionally, respondents express concerns about the need for government support to feel more secure when investing in cryptocurrency. Studies by Tzavaras (2023) and Sadhya (2018) note that the lack of regulatory frameworks can lead to heightened anxiety among investors due to risks related to security and fraud. Participants believe that government backing would lend more legitimacy and protection to digital currencies, thereby reducing fears of fraud, hacking, or market instability. Without clear regulations and endorsements from the government, they feel less confident about the safety and reliability of cryptocurrency, viewing this as a significant barrier to investment. *Motivation* The findings indicate that respondents are primarily motivated to invest in cryptocurrency due to its practical benefits and appeal as an innovative financial tool. A key motivator is the efficiency and time-saving attributes of digital currencies. Respondents appreciate how cryptocurrency streamlines transactions, enabling faster exchanges with fewer steps compared to traditional payment methods. This convenience makes it particularly attractive to those who prioritize speed and ease in managing their finances. This aligns with the study by Pretshus and O\'Malley (2017), which found that tech-savvy investors are intrigued by cryptocurrency because of its technological foundation and ease of use. Moreover, research by Wang (2021) and Fry & Cheah (2016) highlights additional motivations such as a desire for financial innovation, high returns, and the potential of blockchain technology to transform financial transactions. Respondents are inspired by the prospect of using digital currency for future transactions, viewing it as a versatile asset that can meet various financial needs. Students, in particular, see cryptocurrency as an investment with practical applications, allowing them to buy and sell goods and services, which enhances its value as more than just a financial asset. The global acceptance of cryptocurrency noted by respondents reflects the findings of Siu and Hutchings (2023), who explain that widespread adoption boosts investor interest by validating cryptocurrency as a financial trend with growth potential. The increasing use of digital currencies around the world reassures respondents that cryptocurrency aligns with broader financial developments, representing a promising investment opportunity. This expanding acceptance reinforces their belief that cryptocurrency could play a significant role in the future financial landscape. The examination of students\' perspectives on cryptocurrency, categorized by demographic factors, highlights several significant trends as Smutny et al. (2021) and Tzavaras (2023), emphasize cryptocurrency\'s appeal to a broad younger audience without specific mention of gender distinctions this was notably observed in terms of gender the study showed no notable differences were found in risk tolerance, perceived barriers, or motivations. This indicates that both male and female students have a similar viewpoint on cryptocurrency, showing consistent attitudes across all evaluated aspects. Age, however, demonstrated a notable difference in risk tolerance, suggesting that specific age groups are more likely to engage in financial risks associated with cryptocurrency according to Smutny et al. (2021), states that younger generations' inclination toward high-risk, high-reward investments like cryptocurrency is high. Younger generation are more willing to explore new financial technologies, aligning with Fry and Cheah (2016), who discuss younger investors' attraction to speculative investments with substantial potential returns. This finding indicates that younger students may be more open to investing in cryptocurrency, while older students might adopt a more cautious stance. Nonetheless, age did not have a significant effect on other factors such as perceived barriers or motivations. The analysis of academic programs revealed that students from different disciplines exhibit diverse attitudes, particularly in relation to risk-taking and perceived barriers. Those studying in finance-related fields exhibited higher risk tolerance and recognized fewer obstacles, likely due to their familiarity with financial principles. Despite this, motivation to invest in cryptocurrency remained consistent across all academic programs, indicating that all students are similarly driven by the potential rewards of cryptocurrency this connects to Folkinshteyn and Lennon (2016) and Sadhya (2018), who indicate that familiarity with financial concepts reduces perceived barriers and bolsters confidence. Furthermore, user status displayed significant variations. Students who are cryptocurrency users showed a higher risk tolerance, perceived fewer barriers, and were more motivated to invest compared to non-users. This suggests that experience and knowledge about cryptocurrency may foster greater confidence and a more favorable outlook. In contrast, non-users may need more education or exposure to lessen perceived risks and enhance their motivation to invest. The results can be observed in the study of Moniruzzaman et al. (2020) highlighting how familiarity with cryptocurrency can reduce perceived risks and barriers. Folkinshteyn and Lennon (2016) also discuss how users, who have a better understanding of cryptocurrency's functionality, may be more confident and motivated, while non-users face usability and security concerns that limit their engagement. Lastly, the analysis found that students' monthly allowances influenced their risk tolerance, with those receiving larger allowances being more prone to financial risks. This points to the possibility that financial resources might affect students\' willingness to take risks which Zimmerman et al. (2011), suggest that individuals with greater financial resources are more likely to engage in high-risk investments due to higher intrinsic motivation and the means to absorb potential losses.. However, allowance levels did not have a substantial impact on other attitudes, such as perceived barriers or motivations, suggesting that while financial capability shapes risk perception, it does not alter students\' overall attitudes toward cryptocurrency. 4.2 Conclusion ============== The research highlights the complex relationship between awareness, attitude, and readiness to accept cryptocurrencies among college students. Most of the respondents being aged 21 to 23 years holds promise that students of other courses especially, Tourism Management, Nursing and Psychology have an inclination towards cryptocurrency, even though overall awareness is still pretty low and 84% of them do not use digital assets. In spite of having limited financial means, students show a willingness to try other innovative means of financing; however, uncertainty exists because most students have never tried investing in cryptocurrency and there are reasons blocking investment. Most students have a favorable view of cryptocurrency, especially as an exchange medium. However, many are less convinced that it would be a good investment opportunity. The results show that people are excited and drawn by the new and potentially lucrative cryptocurrency; however, most students seem concerned with its risk and volatility, as evidenced by researchers such as Smutny et al. (2021) and Tzavaras. This guarded hope suggests that there are students ready to exploit the advantages of such investments but unwilling to make any monetary contributions because of the inherent risks and other expenses to consider. The findings reveal a strong correlation between the students' attitude towards the technology and the level of awareness of the cryptocurrency on the students 'intention to adopt the cryptocurrency technology. Such fears include distrust towards the concept of currency due to its extreme price fluctuations, its impracticality in day-to-day spending, and the lack of a central bank in issuing the currency. On the contrary, incentive factors like operational ease, worldwide adoption, and possible uses in the future cause a positive effect towards getting interested in cryptocurrency. Overcoming these challenges through better access and usefulness, as well as regulation may make students view cryptocurrencies in a more favorable light where they can consider them as means of investment and or finances in general. 4.3 Recommendations =================== Based on the findings from this study, we, the researchers, recommend the following actions to address the barriers and motivations identified among students in relation to cryptocurrency investment. These recommendations are intended to support young adults in making informed decisions, increase cryptocurrency\'s accessibility, and provide a safer environment for student investors. Educational Programs and Workshops on Cryptocurrency Basics and Risks. Universities or financial institutions could organize targeted educational workshops or online courses on cryptocurrency. These sessions would cover essential topics, such as cryptocurrency fundamentals, risk management, security best practices, and responsible investment strategies. By enhancing financial literacy in this area, students can be empowered to make more informed and cautious investment decisions. Promotion of Government and Institutional Backing for Cryptocurrency. Addressing students\' concerns regarding government support, advocacy groups and institutions could work with policymakers to create and promote clear regulations that protect cryptocurrency investors. Informing students about these regulatory changes and security improvements can increase confidence in cryptocurrency, making it a more attractive investment option. Enhancing Access and Practical Use of Cryptocurrency for Daily Transactions. To tackle the barrier of limited usability, partnerships between cryptocurrency platforms and local businesses could help expand acceptance of digital currency in daily transactions. For example, businesses around universities could start accepting cryptocurrency for smaller purchases, making it a more practical choice for students and helping them gain real-world experience with digital assets. Development of Student-Specific Cryptocurrency Investment Platforms or Funds. Given students' limited financial resources, creating low-cost, beginner-friendly investment platforms targeted at young adults can reduce barriers to entry. These platforms could feature educational tools, simulated trading for practice, and low initial investment options, providing a safer and more accessible way for students to explore cryptocurrency. Encouraging Industry Engagement Across Academic Disciplines. Recognizing the diverse academic backgrounds of students interested in cryptocurrency, interdisciplinary events such as seminars and guest lectures could provide insights on how cryptocurrency intersects with fields like business, finance, technology, and psychology. This approach could foster a broader understanding of cryptocurrency's practical applications across various fields. Incentives for Using Cryptocurrency in Low-Risk, High-Value Transactions. To support cautious engagement with cryptocurrency, businesses or institutions could offer small incentives, such as discounts or loyalty points, for using cryptocurrency in low-risk transactions. This initiative would enable students to gain familiarity and experience in using digital currencies without requiring significant financial commitment. In conclusion, the insights from this study emphasize the cautious optimism among young adults toward cryptocurrency, balanced by concerns over volatility, limited usability, and regulatory issues. For future researchers, we recommend exploring specific educational interventions, government policies, and platform features that could further mitigate these barriers. Additional research could also investigate how perceptions of cryptocurrency vary across different socioeconomic backgrounds or over time, as the market and regulatory landscapes evolve. This could provide a deeper understanding of how young adults\' interest in digital assets might grow or change in the coming years.