Open AccessBEHAVIOURAL BIASES IN BITCOIN TRADING
Author(s) -
Taofik Hidajat
Publication year - 2019
Publication title -
fokus ekonomi/fokus ekonomi
Language(s) - English
Resource type - Journals
eISSN - 2549-8991
pISSN - 1907-6304
DOI - 10.34152/fe.14.2.337-354
Subject(s) - cryptocurrency , fallacy , overconfidence effect , behavioral economics , herding , optimism bias , optimism , loss aversion , perspective (graphical) , economics , cognitive bias , herd behavior , positive economics , financial economics , psychology , microeconomics , computer science , computer security , social psychology , cognition , artificial intelligence , philosophy , epistemology , neuroscience , forestry , geography
This paper aims to propose some behavioural biases of trading in Bitcoin. It is review literature in the areas of behavioural finance that address issues related to Bitcoin to underpin the conceptual model. A conceptual model for understanding the behavioural bias that affects investing in cryptocurrency is proposed. The biases are herding, optimism, overconfidence, confirmation bias, loss aversion, and gamblers’ fallacy. This paper ought to fill the research gap on cryptocurrency from the behavioral perspective. This paper implies that prices and Bitcoin transactions are more determined by psychological factors.