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Aalto University School of Business Master's Theses are now in the Aaltodoc publication archive (Aalto University institutional repository)
School of Business | Department of Finance | Finance | 2015
Thesis number: 14560
Sharing behaviour of bitcoin investors - evidence of confirmation bias?
Author: Perä, Miika
Title: Sharing behaviour of bitcoin investors - evidence of confirmation bias?
Year: 2015  Language: eng
Department: Department of Finance
Academic subject: Finance
Index terms: rahoitus; financing; sijoittajat; investors; käyttäytyminen; behaviour; behavioral finance; behavioral finance; päätöksenteko; decision making; sosiaalinen media; social media; tieto; knowledge; raha; money; virtuaalitodellisuus; virtual reality; digitaalitekniikka; digital technology
Pages: 50
Key terms: confirmation bias; information sharing; Twitter; bitcoin; sentiment analysis; cognitive bias
Abstract:
Confirmation bias is a cognitive fallacy that can lead investors to make wrong decisions. It affects how one interprets, searches and recalls information. Yet there is lack of research on how confirmation bias influences information sharing behaviour. Do people share more readily news or information that is closer to their beliefs?

I investigate the sharing (retweeting) behaviour of bitcoin media followers. I further assume that bitcoin investors belong to a subset of bitcoin media followers. I find evidence that retweeting behaviour of positive and negative sentiment news is related to bitcoin price changes on a weekly level. When price goes up bitcoin investors tend to share more positive news and when price goes down relatively more negative news are shared. I also investigate the long term sharing tendency and find that on average bitcoin investors tend to share equal amounts of positive and negative news. I argue that this sharing behaviour is a demonstration of confirmation bias influencing information sharing behaviour.
Master's theses are stored at Learning Centre in Otaniemi.