FACTORS GEN Z IN INDONESIA DECIDE TO INVEST IN CRYPTOCURRENCY

• Main Author: Juliartha Tandjung, Christopher
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/85827
• Institution: Institut Teknologi Bandung

Cryptocurrency, led by Bitcoin, has gained significant attention, particularly among younger generations. Bitcoin, introduced in 2008 by the pseudonymous Satoshi Nakamoto, marked the beginning of a new era in digital finance. Following Bitcoin, numerous other cryptocurrencies, known as altcoins, emerged, utilizing blockchain technology. Despite its rapid global growth, only 4.5% of the global population is currently invested in cryptocurrency, signaling its early adoption phase. Generation Z (Gen Z), born between 1997 and 2012, represents a substantial demographic in Indonesia, comprising nearly 28% of the population. Within this group, Gen Z constitutes almost 80% of Indonesia's 18 million cryptocurrency investors. Understanding the factors that drive Gen Z's investment decisions in cryptocurrency is crucial as this generation is poised to become future financial market leaders. This research aims to explore these factors, offering insights for financial institutions and policymakers. The study identifies five key factors influencing Gen Z's investment in cryptocurrency: investment motivation, perception of cryptocurrency’s future, perception of market volatility, credibility of cryptocurrency apps, and the impact of social media influencers. Investment motivation is driven by Gen Z's desire for financial gain and improved living standards, with many seeing cryptocurrency as a path to wealth. The optimistic perception of cryptocurrency's future as a transformative force in finance also encourages investment. Additionally, Gen Z's responses to market volatility vary, with some viewing it as an opportunity while others are more cautious. The credibility of cryptocurrency apps, particularly their security measures, is essential for building trust among Gen Z investors. Social media influencers also play a role, with those seen as reputable having a significant impact on the investment choices of their followers. In conclusion, this research provides a nuanced understanding of the factors that drive Gen Z's cryptocurrency investments in Indonesia. The findings highlight the importance of financial motivation, future outlook, risk perception, platform credibility, and social media influence.