Publications
Publications
- 2023
- HBS Working Paper Series
Who Invests in Crypto? Wealth, Financial Constraints, and Risk Attitudes
By: Darren Aiello, Scott R. Baker, Tetyana Balyuk, Marco Di Maggio, Mark J. Johnson and Jason Kotter
Abstract
We provide a first look into the drivers of household cryptocurrency investing. Analyzing
consumer transaction data for millions of U.S. households, we find that, except for high income
early adopters, cryptocurrency investors resemble the general population. These investors span all
income levels, with most dollars coming from high-income individuals, similar to equity
investors. High past crypto returns and personal income shocks lead to increased cryptocurrency
investments. Higher household-level inflation expectations also correlate with greater crypto
investments, aligning with hedging motives. For most U.S. households, cryptocurrencies are
treated like traditional assets.
Keywords
Consumer Finance; Cryptocurrency; Fintech; Inflation; Portfolio Choice; Stimulus; Consumer Behavior; Risk and Uncertainty; Investment
Citation
Aiello, Darren, Scott R. Baker, Tetyana Balyuk, Marco Di Maggio, Mark J. Johnson, and Jason Kotter. "Who Invests in Crypto? Wealth, Financial Constraints, and Risk Attitudes." Harvard Business School Working Paper, No. 23-073, May 2023. (Revised November 2023. NBER Working Paper Series, No. 31856, November 2023)