Behavioral Determinants of Cryptocurrency Investment Decisions among Generation Z Investors in Lampung

Abstract

The rapid growth of cryptocurrency adoption in Indonesia was accompanied by a substantial increase in the number of investors, with Generation Z representing the largest demographic group. Although regret aversion, loss aversion, and mental accounting had each been examined in prior studies, their combined effects on Generation Z cryptocurrency investors outside Java, particularly in Lampung Province, remained underexplored, and prior findings on these biases were inconsistent across contexts. This study aimed to examine the effects of regret aversion, loss aversion, and mental accounting on cryptocurrency investment decisions among Generation Z investors in Lampung Province, Indonesia. A quantitative approach was employed using a questionnaire distributed to 128 respondents selected through purposive sampling and analyzed using multiple linear regression. The results showed that regret aversion had a significant negative effect, whereas loss aversion and mental accounting had significant positive effects, together explaining 95.9% of the variance in investment decisions. These findings confirmed that psychological biases played an important role in shaping Generation Z's cryptocurrency investment behavior. However, this study was limited to a single province and relied on self-reported survey data, which may restrict generalizability. The study contributed to the behavioral finance literature by providing empirical evidence from an underrepresented regional context in Indonesia.

Keywords

Cryptocurrency Investment Decision Generation Z Loss Aversion Mental Accounting Regret Aversion