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 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 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.