Chapter II

Review of Related Literature

This chapter shows a retrospective presentation of previously

written material: research literature and conceptual that has

relevance and significance to the research under considered.

Foreign Literature

Risk and Opportunities in the Cryptocurrency Market

With the promise of financial gain comes the risks in this new

market. Canh, Thanh, and Thong (2019) provided a good overview of

the main concerns that investors should consider before diving

into the cryptocurrency market. The study found that structural

breaks, like in many other investment markets, are also present

in cryptocurrency, as well as volatility spillovers. This means

that the cryptocurrency market has an intrinsic

interconnectedness and lacks a diversified feature. Huynh (2019)

agreed to the concern on spillovers and recommended the usage of

different hedging instruments to address the issue of portfolio

diversification.
Volatility, which is a characterization of any new market like

cryptocurrency, can both be a good thing and a bad thing (Armour,

2021). Crypto value may rise and drop rapidly and thus the risk

of gain and loss is too large to quantify and predict accurately.

Despite the high level of volatility, the cryptocurrency market

is still considered a good long-term investment that is

advantageous because it is not restricted by borders and with an

investor market accessible any time of the day (NDTV Business

Desk, 2021).

Non-fungible Token (NFT) and Cryptocurrency

Ante (2021) study has explained well the relationship between

NFTs and cryptocurrency. The study found that Bitcoin (BTC) and

Ethereum (ETH) pricing affects the NFT market, while the NFT

market does not significantly influence the pricing of

cryptocurrencies. It thus appears that the smaller NFT market is

driven by the cryptocurrency market. This is plausible, as

cryptocurrencies are the common currency for buying and trading

NFTs. A drop in cryptocurrency value means lower purchasing

power, which is likely to depress the NFT market. Conversely,

when cryptocurrencies appreciate, investors tend to look for new

or alternative investment opportunities.  

The Crypto Phenomenon: Consumer Attitudes & Usage

Study stated that digital currencies are basically a digital

version of money, controlled by a personal cryptanalytic key – a

unique random string of numbers. Similarly, from the method that

physical money exists in a designate physical type and possession

is determined by holding paper bills, ownership of digital

currency is determined by holding a personal key related to a

crypto case which may be accustomed store and transfer digital

currency. The term “crypto” is typically used to describe by any

digital currency. In addition, the researcher conclude that

cryptocurrency and other digital currencies are part of the

popular consciousness and poised for additional growth,

especially in emerging markets with wide reaching implications

for payments, finance and commerce. Whereas, cryptocurrency is

still in the nearly ages, it is remarkable and growing fast. In

line with this, over 11% of passive owners globally have positive

view in cryptocurrency. On the other hand, over 21% globally are

curious wherein they have taken steps to learn about this

cryptocurrency but haven’t tried yet and has a good perception

while skeptics, 11% globally are the one who have taken steps and

have negative perception. Lastly, unengaged 37% globally, haven’t

done research in cryptocurrency and/or are indifferent about it.

Attitude of the Millennial Generation Towards Cryptocurrency

The study of Patil, Pratim Shekhar (2019), stated that multiple

aspects and problems can influence the typical millennial

investor's decision-making process. As stated, Patil, Pratim

Shekhar infers that millennial have positively embraced the

notion of cryptocurrencies but are hesitant to engage in real

trading due to a lack of adequate knowledge, awareness and

abilities. However, professional millennials have recognized it

as a valuable financial asset. Thence, the whole research on

cryptocurrency would help one in comprehending the strength and

shortcomings of it in today's society, as well as the logical

thinking that has guided the conclusions.

Awareness Program on Cryptocurrency

C. Kandasamy (2022), assert that in the future, purchasing and

investing in cryptocurrency would displace investment in gold,

land and mutual funds and proclaim, all individual from any part

of the world could send money whencesoever without service

payment. Moreover, C. Kandasamy guaranteed Cryptocurrency

operated in a safe and secure manner, with complete transparency.

Third-party interference is impossible. In addition, hackers

doesn’t have any chance to hack the records in the technology

because the enciphered records can't be revise or deleted.