2026-08-15T04:17:54Z https://drops.dagstuhl.de/oai

oai:drops-oai.dagstuhl.de:24729 2026-01-21T09:56:11Z ddc:004 open_access

Do Inflation Expectations Drive Cryptocurrency Investments? (Extended Abstract) Cong, Will Ghosh, Pulak Li, Jiasun Ruan, Qihong Streltsov, Artem Bitcoin Cryptocurrency Household Finance Inflation Stablecoin This extended abstract summarizes the essence of [Cong, Ghosh, Li, Ruan, and Streltsov, 2024], which uses proprietary data from a predominant cryptocurrency exchange in India and the country’s Household Inflation Expectations Survey to document a significantly positive association between inflation expectations and individual cryptocurrency purchases. The authors find that the effect is concentrated in Bitcoin (BTC) and Tether (USDT) trading, and is robust after controlling for speculative demand captured by surveys of investors' expected cryptocurrency returns. They also find that higher inflation expectations are associated with more new cryptocurrency investors. These results have causal interpretations as confirmed by instrumental variables. The findings of [Cong, Ghosh, Li, Ruan, and Streltsov, 2024] provide direct evidence that households already adopt cryptocurrencies for inflation hedging, which in turn rationalizes their high adoption in developing countries without a globally dominant currency. Schloss Dagstuhl – Leibniz-Zentrum für Informatik Will Cong and Pulak Ghosh and Jiasun Li and Qihong Ruan and Artem Streltsov 2025 Is Part Of LIPIcs, Volume 354, 7th Conference on Advances in Financial Technologies (AFT 2025) InProceedings Text doc-type:ResearchArticle publishedVersion application/pdf doi:10.4230/LIPIcs.AFT.2025.10 urn:nbn:de:0030-drops-247292 https://drops.dagstuhl.de/entities/document/10.4230/LIPIcs.AFT.2025.10 eng https://creativecommons.org/licenses/by/4.0/legalcode