Analysis of factors affecting investors’ decision towards cryptocurrency investments in Saudia Arabia: A moderating role of fear of missing out (FOMO) on decision-making

Asif Hasan; Shahid Alam; Sufyan Habib; Mohammed Arshad Khan

doi:10.24294/jipd.v8i9.6419

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Analysis of factors affecting investors’ decision towards cryptocurrency investments in Saudia Arabia: A moderating role of fear of missing out (FOMO) on decision-making

Asif Hasan

Shahid Alam

Sufyan Habib

Mohammed Arshad Khan

Journal of Infrastructure Policy and Development 2024, 8(9), 6419; https://doi.org/10.24294/jipd.v8i9.6419

Submitted：15 May 2024

Accepted：03 Sept 2024

Published：12 Sept 2024

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Abstract

This research aims to investigate the factors shaping the investment choices of individuals in Saudi Arabia concerning cryptocurrencies, particularly focusing on the influence of the Fear of Missing Out (FOMO) psychological phenomenon. This study employs a mixed-methods approach to comprehend the factors influencing Saudi investors' decisions in the cryptocurrency realm. Quantitative surveys are conducted to gauge perceptions of risk, return, regulatory factors, and social influence. Additionally, qualitative interviews delve into the nuanced interplay of these elements and the impact of FOMO on decision-making. Integrating the Theory of Planned Behavior and Behavioral Finance theories, this research offers a holistic understanding of cryptocurrency investment determinants. The combined quantitative and qualitative methods provide a comprehensive view, enabling an in-depth analysis of the subject matter. The study reveals that Saudi Arabian investors' decisions regarding cryptocurrencies are significantly influenced by multiple factors, including perceived risk, potential return, regulatory environment, and social dynamics. FOMO emerges as a crucial psychological factor, interacting with these influences and driving decision-making. This research underscores the intricate interplay between these factors and FOMO, shedding light on the dynamics of cryptocurrency investment choices in the Saudi Arabian market. The findings hold implications for policymakers, financial institutions, and investors seeking deeper insights into this evolving landscape. Drawing from the Theory of Planned Behavior and Behavioral Finance, it examines perceived risk, return, regulatory factors, and social influence in influencing cryptocurrency investment choices among Saudi investors, focusing on the influence of Fear of Missing Out (FOMO). The research outcome provides insights for policymakers, financial institutions, and investors seeking to understand cryptocurrency investment dynamics in Saudi Arabia.

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References

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