Evaluation of the Cryptocurrency Adoption Decision Using Hierarchical Decision Modeling (HDM) (2024)

FAQs

What is hierarchical decision modeling HDM? ›

HDM is a mission-oriented method for evaluation and/or selection among alternatives.

Finally, this study identified that mooring factors, such as risks, negatively influence the pull factors and adoption of cryptocurrency, while social factors, technological factors and security, positively influence the pull factors.

Global crypto activity is increasing

Last year, growth in crypto adoption was driven primarily by lower-middle income countries. This year, however, crypto activity increased across countries of all income brackets, with a pullback in high income countries since the beginning of 2024.

Hierarchical data models are used to organize information related to locations and their subdivisions. As an example, a country can be termed as a parent node with multiple child nodes as states and these states can have further child nodes as cities.

Thus, hierarchical modeling allows an analyst to focus on more manageable components of the problem. Hierarchical models also provide conceptual clarity by allowing factors that influence observations to be decoupled from those that influence the ecological process.

Cryptocurrency can be vulnerable to scams or used as a payment mechanism of a scam. Scammers often use platforms like Facebook, Instagram and X (formerly known as Twitter) to trick people into these investments. If you suspect you've been targeted, it's important to report this to Action Fraud as soon as possible.

Crypto adoption by businesses can take place once digital assets are officially recognized as tradable instruments on major exchanges. But before the given stage passes, cryptocurrencies can be used by businesses for transaction processing, loyalty program launches, saving on fees, and lending interest.

Bitcoin continues to lead the pack of cryptocurrencies in terms of market capitalization, user base, and popularity. Other virtual currencies, such as Ethereum, are helping to create decentralized financial (DeFi) systems.

What drives cryptocurrency adoption? ›

In addition, the paper suggests that the main factors driving the adoption decision revealed from the literature review are the investment opportunity cryptocurrency forms, the anonymity of the transactions and privacy, the acceptance by businesses as a payment method, the fast transfer of funds, the low cost of ...

One of the main barriers to blockchain adoption is the technical complexity of the technology itself. Blockchain involves complex concepts such as cryptography, consensus algorithms, smart contracts, and distributed ledger.

Hierarchical decision models are developed through decomposition of complex decision problems into smaller and less complex subproblems. They are aimed at the classification or evaluation of options and can be used for analysis, simulation and explanation.

A Hierarchical Model is defined as a network architecture that utilizes layered clusters, either static or dynamic, to enhance network management, scalability, and reduce the number of transmitted messages.

Hierarchical linear modeling (HLM), also known as multilevel modeling, is a type of statistical analysis that can be applied to data that have a hierarchical or nested structure.

Hierarchical modeling is used when information is available on several different levels of observational units. For example, in epidemiological modeling to describe infection trajectories for multiple countries, observational units are countries, and each country has its own temporal profile of daily infected cases.