Literacy of Cryptocurrency among Business and Accountancy students of Mountain View
College
Background of the Study
The cryptocurrency market has evolved erratically and at unprecedented speed over the
course of its short lifespan. Since the release of the pioneer anarchic cryptocurrency, Bitcoin, to
the public in January 2009, more than 10000 cryptocurrencies have been developed, the
majority with only a modicum of success. (Farell, 2015). Cryptocurrencies are a global
phenomenon that could possibly replace fiat currencies (governmentally regulated money) in
the near future. Since the world is progressing towards a cashless society cryptocurrencies
continue to gain momentum (Goyal, 2018).
Evaluating the degree of financial literacy of cryptocurrency users is vital. Users are
classified as individuals who trade cryptocurrency and/or who own or hold cryptocurrency for
personal or business use. Users need to understand and know the foundations of everyday
constructs of financial literacy to help them stay secure in equally the short-term and long-
term, protect their financial health and make critical decisions. (Williams, 2019)
A cryptocurrency is a digital or virtual currency that is secured by cryptography, which
makes it nearly impossible to counterfeit or double-spend. Many cryptocurrencies are
decentralized networks based on blockchain technology—a distributed ledger enforced by a
disparate network of computers. A defining feature of cryptocurrencies is that they are
generally not issued by any central authority, rendering them theoretically immune to
government. Cryptocurrency exchanges and third parties offer storage for your coins through
hot wallets, which are secure, but still online (and therefore still susceptible to hacking). Crypto
held on an exchange or in a wallet is not FDIC-insured like money in the bank. Some exchanges
may even have private insurance policies in case of theft or hacking. For the best protection
against online fraud, many experts recommend cold storage through an offline device not
connected to the internet, similar to a USB drive. But even cold storage comes with risks, like
the possibility of losing access to your investment completely if you forget your password.
(Haar, 2021)
The vast majority of U.S. adults have heard at least a little about cryptocurrencies like
Bitcoin or Ether, and 16% say they personally have invested in, traded or otherwise used one,
according to a new Pew Research Center survey. Men ages 18 to 29 are particularly likely to say
they have used cryptocurrencies. (Perrin, 2021).
The level of awareness of cryptocurrencies in the Philippines was 74 percent among
respondents to a survey conducted in February and March in 2019. While a majority of Filipinos
indicated awareness about cryptocurrencies, their actual holdings remained low due to
perceived risks related to these digital assets. (Vera, 2019). Earlier of the year(2021), the U.S.
website CoinDesk created a crypto literacy test with basic questions about bitcoin, blockchain
and non-fungible tokens (NFTs). Out of thousands of respondents taking the online survey, the
website reported, roughly 98 per cent failed. Respondents had to score over 60 per cent to pass
the test. Nine out of 10 were unaware of bitcoin’s limited supply cap, believing the
cryptocurrency had an unlimited supply (bitcoin actually has a 21 million supply cap). (Hughes,
2021).
Statement of the Problem
The literacy of Cryptocurrency could significantly transform the way people manage
their portfolio and it is inevitable for every people to migrate into Cryptocurrency investment.
With previous studies and data showing that people around the globe especially Europe and US
are rapidly transitioning to the use of Cryptocurrency, it is important for individuals to know
more about Cryptocurrency and its advantages and risks when investing in Cryptocurrency and
how the literacy of Cryptocurrency can affect their overall investment or trading experience.
This study determines the factors and concerns related to Cryptocurrency literacy.
Research Questions
1. What is the demographic profile of the respondents?
2. What is the level of Cryptocurrency literacy among Business and Accountancy students?
3. Does safety and privacy influence the number of investors in Cryptocurrency?
4. Does the Cryptocurrency literacy influence the number of investors in Cryptocurrency?
5. What are the factors that affect the level of understanding in Cryptocurrency?
6. Does the accessibility of the Cryptocurrency information affect the literacy of
Cryptocurrency?
7. Does the complexity of the Cryptocurrency itself affect the level of its literacy among
Business and Accountancy students?
Hypothesis Statement
The following hypothesis are formulated to answer the statements of the problem and to
predict the possible outcomes of the study.
Null Hypothesis
There is no significant relationship between Literacy of Cryptocurrency among Business and
Accountancy students of Mountain View College
Alternative Hypothesis
There is a significant relationship between Literacy of Cryptocurrency among Business and
Accountancy students of Mountain View College
Significance of the Study
The significance of this study is to inform and provide benefits to the following beneficiary:
Student. This study will determine the level of investment literacy and awareness for students
to improve their level of cryptocurrency literacy as a finance-related student.
Institution. This study could be carefully considered by policy makers, universities and other
interest groups in Philippine. This research will aid the institution in enhancing university
curricula to improve students' knowledge and skills, particularly in the area of personal finance
literacy, which can be beneficial to students.
Future Researcher and academicians. This study may be served as a basis for extending work
to gain a better understanding of student knowledge, attitude and behavior in cryptocurrency
literacy.
Scope and Delimitations
This research has been limited to business students particularly in School of Business and
Accountancy from Mountain View College either residential students or online students during
the second semester of academic year 2021-2022. This study focused merely on evaluating the
factors that influence the literature in investment on cryptocurrency on each accountancy
students in Mountain view college.
Though we are in a transition from online learning back to face-to-face learning, data-
gathering will be done through online platform for online students and through questionnaire
on paper for residential students. The data-gathering instruments will be conducted through a
form of questionnaire-checklist that will be used in gathering information about the study.
Furthermore, the process of data collection may be affected by internet connection and varying
online class schedules as well as the schedule of the respondents for residential students on
campus.
Definition of Terms
The following theoretical and operational definition of terms is presented to give the
readers a clearer and better understanding of the terms used in the study.
Awareness – It refers to a concern about and well-informed interest in a particular situation or
development.
Bitcoin – It refers to a type of digital currency in which a record of transactions is maintained
and new units of currency are generated by the computational solution of mathematical
problems, and which operates independently of a central bank.
Blockchain – It is a system in which a record of transactions made in bitcoin or another
cryptocurrency are maintained across several computers that are linked in a peer-to-peer
network.
Cryptocurrency – It is a digital currency in which transactions are verified and records
maintained by a decentralized system using cryptography, rather than by a centralized
authority.
Decentralized Network – It is a network configuration which distributes workloads among
several machines (computer, servers and network) instead of relying on a single central server.
Digital Assets – It refers to any digital material owned by an enterprise or individual including
text, cryptocurrency, NFT, graphics, audio, video and animations.
Investment – It is an asset or item acquired with the goal of generating income or appreciation.
Literacy – It refers to a level of understanding and knowledge in a specified area.
Perceived risks - It is defined as the potential loss in pursuing a desired outcome while engaged
in Cryptocurrency investment.
Portfolio - It is a collection of financial investments including stocks, bonds, cryptocurrency,
commodities, cash, and cash equivalents.
