Enablers for Growth of Cryptocurrencies: A Fuzzy–ISM Benchmarking

Abstract

Cryptocurrencies and their market capitalisation have experienced vibrant growth in the last few years. Their total market cap is more than USD 858 billion as of the date of writing and is growing, with nearly 21,984 tradeable cryptos in 530 exchanges. It is emerging as one of the biggest threats to the traditional fundraising market. The issue of the industry’s long-term viability and steady expansion is of paramount importance. Even though unsustainable and uneven growth could help boost economic activity in the short term, it would be detrimental in the long run because of the risk of extinction. This paper is one of the first attempts to identify the factors contributing to the growth of the cryptocurrency market and their effects. This paper is based on the hybrid MCDM methodology of research and uses fuzzy–ISM (interpretive structural modelling). This method is divided into three phases: identification, expert opinion, and interpretation. Sixteen factors were chosen from the previous literature and suggestions from industry professionals. Seven barriers have been framed based on the fuzzy–ISM analysis to better understand the impacts of and interrelationships among the identified barriers. The factors are further classified using fuzzy MICMAC into four major categories based on the drive power and dependence power extracted from the fuzzy matrix. This paper explains the importance of all identified factors as enablers of the acceptance of cryptocurrencies for investment and fundraising.