Betting on Bitcoin

Abstract

Market-shaping research assumes that firms are the primary actor to lead, manage, and respond to the formation of markets. This viewpoint is increasingly being challenged, but empirical insights explaining the roles, resources and actions of actors other than firms shaping markets remain limited. We address this gap in knowledge by drawing on insights from an in-depth ethnography of market-shaping in the context of cryptocurrency communities. Our theoretical and empirical contributions consist of a typology that highlights four distinct roles performed by individuals shaping cryptocurrency markets. We furthermore identify six micro-level market actions, and delineate a novel theoretical model and propositions outlining the pathways with which these actions impact market size, market offerings, as well as market functioning. This study thereby establishes an important avenue for future research, and offers managerial guidelines enabling practitioners attempting to benefit from cryptocurrencies. Show more