PES UNIVERSITY
(Established under Karnataka Act No. 16 of 2013) 100-ft Ring Road, Bengaluru – 560 085, Karnataka, India
Business Analytics - Mini Project
Study of Investors Awareness on Cryptocurrency and
NFT’s
Submitted by:
Shrikar Chalam (PES1UG20BB117) Jan to May 2022
Submitted to:
Dr. Pranav Ranjan
Associate Professor
Department of Management Studies
PES University
DECLARATION
I, Shrikar Chalam, hereby declare that the study report entitled,
‘Business Analytics – Mini Project’, is an original work done by Shrikar
Chalam of the student, under the guidance of Dr. Pranav Ranjan,
Associate
Professor, department of Management Studies, and is being
submitted in partial fulfilment of the requirements for completion of
IV Semester course work in the Program of Study BBA at PES
UNIVERSITY.
PLACE: Bangalore
DATE:
NAME: Shrikar P. Chalam
SIGNATURE OF THE CANDIDATE:
Table of Contents
Chapter No Particulars
Front pages • Front Page
• Declaration by the student
Chapter 1 • Introduction to the study
• Background of the topic
• Need/Importance of the topic
• Recent trends related to the topic
Chapter 2 • Literature Review
• Research Methodology
• Research Design
• Questionnaire
• Primary data collection about the topic
Chapter 3 • Conclusion
• Recommendations/Suggestions
CHAPTER 1
Introduction to the Study: Importance and Recent Trends
Ever since humans have walked this earth, they have used commodity (goods) as currency in
the Barter system. The concept of notes and coins was first introduced around 1000 years
ago
and still, as of today, it is one of the dominant usages of currency apart from UPI payments
and online banking. This wasn’t the end of the monetary evolution. Cryptocurrency is the
latest development in the monetary system. Cryptocurrency is not physical asset or a
commodity. It is a virtual currency. Balances are kept using “Keys,” which are both public and
private. The keys are generally long strings of letter and numbers linked through the
mathematical encryption, which was also used to create them. The public key can be termed
as the “bank account number” which serves as the address. this address is published to
public so that they can send crypto coins to their account. The private key is just like an ATM
PIN which is meant to be kept with yourself and should not be disclosed to anybody and must
be used to do crypto transactions only. The government has recently put a 30% tax on all
transactions and earnings regarding to cryptocurrency. All crypto transactions take place on a
blockchain which was created specifically for that crypto coin. One of the first crypto coins
created was the Bitcoin. As of January 2022, the price of the most traded cryptocurrency,
Bitcoin, was $37,929. Some other famous crypto coins are: Ethereum, Solana, Ape Coin, etc.
NFT’s are digital assets which are sold in the blockchain networks of Ethereum and Solana.
These assets appreciate over time due to the demand of NFT’s for usage in the metaverse
and the passive income it offers for owners of specific NFT’s. These assets are acquired by
buying them using Ethereum or Solana coins and can be bought in their respective
blockchains. One such NFT collection is Bored Ape Yacht Club. This collection blew due to the
passive income it offers and the artwork of these apes made a one-of-a-kind collection. The
makers offered the owners of this specific NFT a virtual drawing board where people from
different communities can share their views about anything in general. The demand of an
NFT is based on what they offer to their holders and their roadmap. The roadmap of an NFT
collection shows all the upcoming events that the makers want to conduct in the future. It
also shows any up-and-coming NFT collections which they have sponsored and also their
donations to different companies and NGO’s if applicable.
These NFT’s and cryptocurrencies share a common wallet called a Crypto wallet which can be
used to store your digital assets and NFT’s and also can be used to store the cryptocurrencies
you have bought. Some examples of Crypto Wallets are: MetaMask, OpenSea Wallet, etc.
Need/Importance of the Study
The need to study about the consumer awareness of cryptocurrencies is important due
to the rise in the use and craze of cryptocurrencies all around the world.
To study the various factors, which are important in the adoption of cryptocurrency as a
normalised currency in the future.
CHAPTER 2
Research Methodology
To perform descriptive research, a survey was taken using google form as a research
instrument. This form of questionnaire helped me in analyzing the consumer awareness
about cryptocurrencies and NFT’s in different age groups. The research conducted was a
quantitative survey in the form of a questionnaire to collect data from the selected sample.
This questionnaire consists of 14 questions related to the topic: Awareness of
Cryptocurrencies and NFT’s. The target audience was selected irrespective of age and gender.
The survey was conducted by taking responses from 40 people. Sampling method used was
random sampling method.
Questionnaire
40 responses were recorded from the questionnaire. *
Data Analysis & Interpretation
Table 1: Demographic Profile
N % CUL. %
Gender
Male 26 35% 35
Female 14 65% 100
Total 40 100%
Age Group
18-24 28 70% 70
25-40 2 5% 75
41-60 10 25% 100
60 and above 0 0%
Total 40 100%
Field of Work
IT 3 7.5% 7.5
Business 0 0% 7.5
Finance 0 0% 7.5
Sales 1 2.5% 10
Student 21 52.5% 62.5
Software 4 10% 72.5
Computers 1 2.5% 75
others 10 25% 100
Total 40 100%
*Refer to Links and References
Results show that, out of 40 respondents 35% were female and 65% were male. This shows that
most of the respondents are male. With respect to age, 70% were between the age group of
18-24, 5% were 25-40 and 25% were 41-60. There was no data collected for the age group of 60
and above. This shows that most of the respondents were from the age group of 18-24. With
respect to the field of work of the respondents, 7.5% are in IT, 2.5% are in sales, 52.5% are
students, 10% are in software, 2.5% are in computers and 25% are in others. This shows
students are highly interested in recent trends in the business and technological aspect.
Table 2: Response related to the usage of cryptography
Experience of Cryptocurrencies and NFT's
N % CUL %
Highly Experienced 2 5% 5%
Experienced 2 5% 10%
Moderately Experienced 7 17.50% 27.50%
Less Experienced 11 27.50% 55%
No Experience 18 45% 100%
Total 40 100%
Would you get involved with crypto and NFT's in the future?
YES 31 77.50% 77.50%
NO 9 22.50% 100%
Total 40 100%
If Yes, Why?
Good investment 3 9.677419355 9.677419355
NFT's 3 9.677419355 19.35483871
Blockchain Tech 2 6.451612903 25.80645161
Money Making 2 6.451612903 32.25806452
Future Currency Option 4 12.90322581 45.16129032
Others 17 54.83870968 100
Total 31 100
If No, Why?
Risk 4 44.44444444 44.44444444
Legality 1 11.11111111 55.55555556
Fluid Market 1 11.11111111 66.66666667
Not Interested 3 33.33333333 100
Others 0 0
Total 9 100
According to the survey 45% of the respondents have no experience with cryptocurrencies and
NFT’s, 27.5% said they have a small amount of experience, 17.5% said they are moderately
experienced, 5% said they are experienced and 5% said they are highly experienced. This shows
that people have good awareness about what crypto is but very few respondents have a good
amount of knowledge related to the topic.
When the respondents were asked if they would get involved with crypto and NFT’s in the
future, 77.5% of the respondents said they would and the other 22.5% said they wouldn’t. This
shows that people are interested about how crypto works and are willing to get involved in
crypto and NFT trading in the future. On the other hand, the respondents who said that they
wouldn’t get involved in crypto and NFT trading which had a count of 9, 44.45% of the
respondents said that the risk of trading in these currencies is very high and they didn’t want to
risk their money on such a risky market. 33.34% of the respondents were not interested in
trading in the crypto market.
Table 3: Factors Affecting Cryptography
Variable N MIN MAX MEAN S.D.
Education about Crypto and NFT's 40 1 5 4.125 1.223435684
Retail websites accepting crypto and NFT's as payment 40 1 5 3.475 1.358496529
Anti-Theft Systems for storage of crypto and NFT's 40 1 5 4.325 1.366025491
Stable crypto prices 40 1 5 3.725 1.280775006
Faster transaction process (for payment through crypto and
buying NFT's) 40 1 5 4.075 1.268706185
1-Least Important and 5-Most Important
The respondents were asked to rate the 5 factors on a scale on 1-5, 1 being the least
important and 5 being the most important. According to the survey respondents said that
these factors were the most important: “Education about crypto and NFT’s”, “Anti-Theft
Systems for Storage of Crypto and NFT’s” and “Faster Transaction process (for payment
trough crypto and buying NFT’s”. We can say from the above table that people will get more
involved in crypto if they are educated on what it is and how it can be used. People also do
not have any medium for storing and safe-keeping of their NFT’s and Cryptocurrencies. Even
the ones present now are not safe and have been robbed by blockchain hackers. This shows
that people are willing to invest in crypto if they are safer mediums of storage for their
cryptocurrencies and NFT’s. Respondents also said they are willing to use crypto as a
payment option if the transaction and currency conversion rates are lesser and crypto isn’t
too volatile and fluctuating to invest in.
CHAPTER 3
Conclusion
From the above research we can clearly see those cryptocurrencies and NFT’s is still a market
which is very volatile and risky to invest in as they are no bylaws controlling the volatility of
the prices. An investor cannot interpret when the market will crash or when the market will
boom as they are no indicators for this. NFT’s on the other hand can a good investment
option for people who want to invest in a unique market or a digital asset which is protected
by a meta wallet. These wallets are very secure.
Also, when asked if cryptocurrencies and NFT’s will be a typical payment option in the future,
47.5% of the respondents said “yes”, 42.5% of the respondents said “maybe” and 10% of the
respondents said “no”. This shows that some respondents are unsure about cryptocurrencies
being a payment option in the future. Some even said no as the market right now is very
volatile.
Suggestions and Recommendations
From the research done, these are my recommendations:
Accepting crypto and NFT’s worldwide as a currency will be vital as the currency is on a
secure blockchain and the transaction cannot be tracked which assures the payer and payee
a secure transaction.
Volatility of the market should be controlled as the volatility is very high and risky to invest in.
International transactions will not have any conversion rate fees as the value if the currency
will be the same worldwide
References
BA Mini Project Data.xlsx
BA Mini Project Data Calc.xlsx
https://forms.gle/XmVWBK5oFebLryYF6
