How to Make Users Adopt More Sustainable Cryptocurrencies: Evidence from Nigeria

Some of the most popular decentralised cryptocurrency networks have drawn widespread criticism for consuming vast amounts of electricity and have thus become targets of regulatory interest. Attempts to influence cryptocurrency network operations via policy in the pursuit of sustainability in the past, however, have been widely unsuccessful. Some were abandoned out of fear of jeopardising innovation while others failed due to the highly globalised nature of decentralised systems. In search of a more effective angle for energy policy measures, this study follows a consumer-focused approach by analysing the sentiments of Nigerian cryptocurrency users (${N=158}$) regarding their perceptions of the sustainability of Bitcoin, an archetypal cryptocurrency with high electricity consumption. Three main findings emerged: 1) Despite self-reporting as highly knowledgeable, most participants significantly underestimated the energy demand of Bitcoin. 2) Those who accurately assessed the energy demand of Bitcoin were more likely to support measures targeting its energy demand than those who misestimated it. 3) Those who supported measures predominantly held private actors responsible. In light of these findings, we conclude that the primary task of policymakers in the context of cryptocurrency sustainability may be to improve consumer education.