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Bitcoin

U.S. Investors not Biting on Bitcoin, but Many are Intrigued

Cryptocurrency has been one of the most popular concepts lately worldwide. Though Bitcoin has existed since 2008, it didn’t peak numbers until last year, rising up to $20,000. However, since then, it has not had smooth ride relatively; it’s had to face quite a few ups and downs in price regularly.

Bitcoin was initially a mere means of payment, or ‘electronic cash’, which people only used to have a decentralized currency which is accepted through out the world. Because the currency uses cryptography, the transfers and transactions remain secure and unaltered through the transaction channel, and that is what earned bitcoin its reputation. Simultaneously though, the high volatility of Bitcoin acquired it a “more popular (reputation) as a high-risk/high-reward investment than as an online currency — although acceptance of Bitcoin for electronic payments is growing.”

At the moment, the 24-hour cryptocurrency trade volume is $12.56 billion, but even so the crypto has failed to shimmer allure to the majority of investors from the United States.

A poll was held by Wells Fargo/Gallup, which’s results were published on the 27th of July. The online survey was held among U.S. investors with more than $10,000 in stocks, bonds and/or mutual funds. The results of the poll mirrored a general misunderstanding about cryptocurrency by much of the investment market. While 96% of polled investors were aware of Bitcoin, only 29% reportedly had an any idea about digital currencies, with another two-thirds of investors reporting having heard of other cryptocurrencies but not knowing the depths of it.  When 75% of polled investors reported BTC to be “very risky,” and another 23% calling it “somewhat risky.”, price volatility and risk emerged in the poll results.

The survey also revealed that only a small percentage of Americans are currently invested in Bitcoin, while over a quarter of investors are merely intrigued by the cryptocurrency. Furthermore, study published that 2% of U.S. investors own BTC, whilst 26% said they were ‘intrigued’ by the prospect of investing in the high profile cryptocurrency.
The results were deemed reliable when Finder.com conducted a similar survey earlier this year on 2,000 U.S. investors. Around 8% said they plan on investing in it very soon, and 8% of them said they had invested in crypto. Whilst a 40% majority said they would never invest in cryptocurrencies the numbers here are only representative of ‘investors’ and not ‘Americans’ as a whole.

On another instance, Global Blockchain Business and Survey Monkey conducted a collaborative survey in January 2018, where they used the weighting scheme mentioned above. In doing so, not only did they generate statistics involving cryptocurrency ownership, but also the peoples’ points of views on the concepts.

The sample size of the survey was rather large: 5,761, hence it can safely be said to be representative of the population too. Findings suggested that only five percent of the sample owned cryptocurrency, whereas 21 percent of them were “considering adding cryptocurrency to their portfolios”. The study also distinctively perceived that 58 percent the aforementioned cryptocurrency holders were men under 34 years of age.

Relatively, millennial males made up the largest demographic for being aware or invested in Bitcoin and other digital currencies. The gap in age difference also revealed a similar statistic for younger investors with comparatively less capital,

Investors with less than $100,000 in investments (who tend to be younger) are more likely to be familiar with the innovation than those with higher asset levels.” says the Wells Fargo/Gallup survey. 

The poll loudly parallels that Bitcoin, mostly due to 2018’s sharp decline in price, is still primarily viewed by many investors as a bubble, with the majority of non-invested respondents preferring to wait and see how the price and relatively young company plays out.
The Wells Fargo/Gallup survey states;
The price of bitcoin is back on an upswing after crashing earlier this year, causing some to say its bubble is again about to burst and others to argue that its value will only accelerate as more merchants inevitably adopt it. For now, most investors are on the sidelines, knowing little to nothing about bitcoin. Few are already invested in it, and even fewer plan to jump in soon.
It is deemed only logical to conclude that education, particularly in the form of greater understanding about what cryptocurrencies are, how they function, and what the underlying technology provides to both the world and financial markets would help improve the adoption of the currency with well capitalized investors.

Malaika Iqbal

Young aspiring individual, writing what matters to the millennials. Contributes guest posts to BlockPublisher with industry news & emerging startups in the blockchain space. Email: editor.startups@blockpublisher.com

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