Trust, Risk, and the Social Meaning of Money among Cryptocurrency Traders

Abstract

The emergence of cryptocurrencies as a novel form of digital money has expanded the conceptual boundaries of traditional economics and highlighted the necessity of rethinking fundamental concepts such as trust, risk, and the social meaning of money. Within the framework of economic sociology, this study investigates the social meaning of money among cryptocurrency traders, the factors influencing the development and reinforcement of user trust in this emerging financial tool, and the mechanisms for managing risk in decentralized markets. The study employed qualitative data analysis through semi-structured in-depth interviews and purposive snowball sampling to collect qualitative data from cryptocurrency traders. Through a detailed analysis of these data, the study achieved a comprehensive understanding of the interrelations among trust, risk, and the social nature of cryptocurrencies. The findings indicate that trust, as the foundation of economic exchanges, in the context of cryptocurrencies, depends not merely on economic factors but also on social and cultural dimensions such as information transparency, the role of social networks and relationships, group interactions, and mutual trust, which together establish a framework for interaction and socialization. Furthermore, the perception of risk in these markets—especially amid high volatility—is strongly influenced by social acceptability, the rise of consumer culture, norms that promote high-risk behavior, peer pressure, and the role of digital identities. The study also shows that cryptocurrencies, by providing financial independence from traditional financial systems and facilitating global communication, not only play an economic role but also serve as tools for constructing and reinforcing social identities, thus enhancing financial convergence and reducing financial boundaries. Understanding the complex dimensions of trust and risk in these contexts can inform the development of policies and strategies aimed at reducing user vulnerability, increasing transparency, and enhancing security in cryptocurrency exchanges. This research enriches the existing academic literature and underscores the need to revise social theories related to money and economic exchange in the digital age.