Posted on

Poll: 8% of Americans Invest in Cryptocurrency

Bitcoin (BTC)–A poll released by the analytics firm Harris Insights earlier in the month has revealed that roughly 8 percent of American adults are invested in cryptocurrency. While this number pales in comparison to a similar Gallup poll figure conducted in 2016, which found about 52 percent of Americans own stock, it does show a substantial makeup of investing for the relatively young industry.

The results come from a survey first circulated in June 2018, in conjunction with the cryptocurrency app Gem. In addition to finding 8 percent of adults currently invested in cryptocurrency, a large response to digital assets was negative, with 41 percent of the 2,000 polled stating they were not invested in crypto and nothing could motivate them to change their mind into doing so. Similar to previous reported findings, the largest reason for the lack of interest in cryptocurrency was price volatility and belief that the current market is still in a ‘Wild West’ phase, two risky features that make the form of investment less appealing to older generations. However, the poll did find that younger investors and those with less overall capital were much more willing to participate in the risky market, with Gem’s founder and CEO Micah Winkelspecht saying,

“We find that younger people with less income are more willing to put money in crypto,. My guess is that crypto is of the digital age. And the younger generation is of the digital age and used to doing everything on the internet.”

One of the more surprising results from the survey was the reluctance of polled adults, of any age, earning over $100,000 annually to invest in cryptocurrency, with the percentage of crypto investors increasing with decreased yearly income. In addition to cryptocurrencies being more in vogue with younger generations, Winkelspecht also posits that the upside of crypto investing outweighs the risk of loss and volatility to younger adults with less overall capital. He also admits that the trend of less wealthy investors putting money into cryptocurrency could be an effort to ‘get rich quick,’ ignoring the significant risks posed by the market in an effort to cash in on the regular double-digit swings of the industry.

“The cryptocurrency space is still in its Wild West phase, so there’s potentially some of that going on. When you have less to protect, you are more willing to take the risk.”

As Fortune points out, the survey was conducted in the middle of an extremely bearish year for cryptocurrency, with Bitcoin falling from an all time high last December of near $20,000 to below $7000, making the investment appear far more volatile with less enticing upside than if the same survey was conducted during last year’s bullish fourth quarter. Rather than continuing to build excitement for blockchain, Bitcoin and crypto adoption, most of the conversation surrounding the industry in 2018 has shifted to increased regulation and the possibility of a Bitcoin-based Exchange-Traded fund.  

Despite only 8 percent of polled investors currently participating in cryptocurrency, the survey found that 50 percent of American adults are interested in trying out the asset class in the future, similar to a finding reported earlier in the month that cryptocurrency will make up 5 percent of all investments in 2019. With the SEC still planning to weigh in on the debate over Bitcoin ETFs, it is possible that the market will continue to grow exponentially in response to increased regulation enticing institutional investors.

Girl in a jacket

loading…

Posted on

Gallup Poll: 26% of U.S. Investors ‘Intrigued’ By Bitcoin (BTC)

Bitcoin (BTC)–Potential adoption for the top ranked cryptocurrency by market capitalization looks a whole lot better following the release of a new Gallup poll.

On Friday, the results of a Wells Fargo/Gallup poll revealed that while only a small percentage of Americans are currently invested in Bitcoin, over a quarter of investors are intrigued by the cryptocurrency. The study’s published results found that 2 percent of U.S. investors polled reported owning BTC, while 26 percent said they were ‘intrigued’ by the prospect of investing in the high profile cryptocurrency. In addition, three in four investors who had heard of Bitcoin reported it to be “very risky” as a source of investment, reflecting the typical sentiment of general media outlets that focus on the price volatility of the currency.

Gallup, Inc., an American research based company, is widely regarded as one of the most comprehensive analytics firms for public opinion polls across the globe. Between May 7 – 14 of this year, the company conducted an online survey among U.S. investors with more than $10,000 in stocks, bonds and/or mutual funds. The results of the poll reflected a general lack of understanding about cryptocurrency by much of the investment market, as well as the aforementioned fixation on price volatility. While 96 percent of polled investors had heard of Bitcoin, only 29 percent reported knowing something about digital currencies, with another two-thirds of investors reporting having heard of other cryptocurrencies but not knowing much about them. Price volatility and risk emerged in the poll results, with 75 percent of polled investors reporting BTC to be “very risky,” and another 23 percent calling it “somewhat risky.”

As the papers outlines, polled investors seemed to ignore or not be entirely aware of Bitcoin’s utility as a tool for digital payment, instead choosing to focus on the price volatility that provides potentially high reward but for a tradeoff in risk,

“[Bitcoin’s] more popular as a high-risk/high-reward investment than as an online currency — although acceptance of Bitcoin for electronic payments is growing.”

Younger males made up the largest demographic for being aware or invested in Bitcoin and other digital currencies, with a divide in age difference also revealing a similar statistic for younger investors with 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.”

The poll concludes that Bitcoin, in large part due to 2018’s sharp decline in price, is still primarily viewed by many investors as a bubble, with the majority of uninvested respondents preferring to wait and see how the price swing plays out,

“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.”

Clearly 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.

loading…