Cryptocurrencies have been making the news for some time now, especially with the huge increases in the value of bitcoin and the overall volatility of the market. Recently, a case has been put forward which gives the reason for this volatility in the market as one being attributed to the industry being male dominated. Several surveys do confirm the cryptocurrency community is dominated by men, and according to Google Analytics, CoinDance Bitcoin Community only has 8.78% female participation. So is it right to assume that cryptocurrency market behaviour is all down to men?
Well, for a start, these types of industries tend to be male dominated, especially in the early stages. The Cryptocurrency industry has often been compared to the growth of the internet. Early users of the internet had to have some technical know-how and in general were pretty geeky; however, as time progressed, going online became extremely easy and user friendly. This is exactly the same for cryptocurrency and blockchain pioneers, who were really only comfortable in tech forums and/or playing video games; but there is no doubt that more and more of the general public and business will find it increasingly easier to utilise cryptocurrencies as time goes on.
Furthermore, it is acknowledged that cryptocurrencies are a bit of a gamble and high risk, which is made even more so by being not regulated nor accepted with open arms by the main stream financial world. So, with studies showing that women, in general, tend to be more risk averse than men; it is logical that cryptocurrencies will not be an attractive proposition for them.
Therefore, it can be argued that men being happier to take on a higher level of risk is the main reason why the market has been so crazy at times. However, this is very difficult to quantify. For example, how much more trading (buying and selling) of cryptocurrencies is actually taking place as a result of risky investors. Furthermore, there is valid argument for the fluctuations in the market being down to increased regulations across the globe and lack of institutional capital.
What is most likely to be the case, is that, cryptocurrencies are a relatively new phenomenon; and as such needs to go through the growing pains that every new technology has to endure. In fact, even though there is still some way to go, we can already see a growing number of industries and markets embracing the cryptocurrency and blockchain opportunities together with incorporating it into new as well as existing business models. For example, there is a growing presence of this new payment option in the online casino world, as well new entities actually launching new casinos based on blockchain technology.
With regards to gender, it is only a matter of time for more of the fairer sex to get involved with cryptocurrencies. This is guaranteed with more than 80% of consumer spending being influenced by women, as well as women being seen more in all areas of the tech and financial industries, plus being active in both corporate and start-up businesses.