Bitcoin has emerged as a new investment front. Although bitcoin adoption is an ongoing work, it has many uses. Some investors hold bitcoin for profit, while others use cryptocurrencies for online transactions.
ONE new study of Baked now gives us a bird’s eye view of the state of bitcoin adoption in the United States. Bakkt is a financial services company focusing on cryptocurrencies. According to the study, most people have invested in bitcoin and cryptocurrency for long-term benefits. In this article, we will examine the survey results in detail. Let’s dive right in.
About the study
The survey was commissioned by Bakkt and conducted via an online tool in July 2021. It sought responses from 2,000 consumers across the United States. The study aimed to map bitcoin and cryptocurrency development trends over the past six months and the next six months. The researchers used the American Community Survey of the Census Bureau to weigh education, gender, age, geography, and race.
Bitcoin and cryptocurrency investment
According to the survey, 48% of respondents have invested in bitcoin and cryptocurrencies in the last six months. A significant number (19%) of investors have invested less than $ 100. Those who have invested more than $ 1,000 make up 5%. With 69% of respondents under the age of 44, this means that most investors in the United States are relatively young.
The majority of investors across all age groups have invested less than $ 100 in bitcoin and cryptocurrencies. For example, 45% of people between 45-60 years old own bitcoin and cryptocurrency worth less than $ 100. The age group 18–29 years is in second place with 38%, and the age group 30–44 years in third place with 36%. Only 32% of people over the age of 60 have invested less than $ 100.
Appealing properties of Bitcoin and cryptocurrencies
Bitcoin and cryptocurrencies have different uses. According to the Bakkt survey, 58% of Americans have bought bitcoin or other cryptocurrency in the last six months as a long-term investment. However, 43% of investors hope to make a short-term profit.
In addition to investments, people have also bought bitcoin for online transactions. According to the Bakkt survey, 24% of respondents said that cryptocurrencies enable them to buy online. Similarly, 12% of investors plan to use cryptocurrencies for personal purchases of goods and services. Only 11% have purchased cryptocurrency that intends to transfer to another, for example, to pay a friend or family member.
The use of cryptocurrency for long-term investments and the accumulation of value is the main reason for investments across all age groups. Long-term cryptocurrency investors in the age groups 18 to 29 and 30 to 44 are 35% and 36%, respectively, while only 21% of investors between 45 and 60 have bought cryptocurrencies for long-term investments. In addition, the study shows that long-term cryptocurrency investment only appeals to 14% of Americans over the age of 60. Looking at one of the popular bitcoin long-term predictions provided by TradingBeasts, the bitcoin price is expected to reach a maximum price of $ 77,221.06 by the end of 2024. Given this fact, younger investors may be smarter about investing in bitcoin than older generations.
Despite the craze of bitcoin and cryptocurrency by its massive growth potential, many people show no interest in crypto investments. According to the survey, 25% of the population is not interested in investing in bitcoin and cryptocurrencies in the next six months. The crypto investment only appeals to 32% of the entire sample. About 43% of respondents have a lukewarm approach to this modern investment path, but 10% of respondents are “very interested.”
The study breaks down the interest in crypto investments by different age groups. Crypto investments appeal most to people between the ages of 18 and 44. However, Americans between the ages of 45 and 60 show the least interest, with 33% being uninterested in bitcoin and cryptocurrency investments.
The most compelling reason to invest in bitcoin and cryptocurrencies is the potential for long-term return on investment. Lack of fees accounts for 16% of the appeal. Other factors, including easy access, fear of missing out, lack of centralized control and others, have the same appeal. Investors across all age group distributions cite long-term return on investment as the leading factor for crypto investments. Specifically, 34% of people between the ages of 18 and 29 have invested in cryptocurrencies for long-term profits. According to the Bakkt survey, the fear of missing out on the motivation factor for investing in cryptocurrency for people over 60 is.
High volatility is the leading challenge
Like other investments, investing in bitcoin and cryptocurrency is not without challenges. According to the Bakkt survey, too much volatility is the biggest challenge, with 32% of respondents identifying the problem. Lack of knowledge about where to start comes second. Other challenges include high prices and lack of trust in third-party centers and brokers.
In terms of gender, too much volatility was the biggest challenge for men. On the other hand, women saying they did not know where to start posed the biggest obstacle. High volatility was also the biggest obstacle in all age groups except people over 60 years. The senior citizens claimed that not knowing where to start was the biggest obstacle to crypto investing.
Bitcoin and cryptocurrency knowledge levels in the US
When it comes to bitcoin investments, people have different views. Some people are enthusiastic and follow bitcoin news quite closely. As a result, they become well-versed in the industry. Others let walk in the dark. The Backed study sought to find out how talkative Americans are in investing in bitcoin and cryptocurrency.
According to the Bakkt survey, 35% of respondents said they know nothing about bitcoin and cryptocurrencies. The good news is that 6% of respondents “know a lot”. The rest falls in between with insufficient knowledge of the industry.
In terms of gender, men are more familiar with bitcoin and cryptocurrency investments than women. The proportion of men who “know a lot” is 9% against 3% in women. Similarly, the proportion of women who know nothing about cryptocurrencies is 45% higher than 24% in men.
People between the ages of 30 and 44 know a lot more about bitcoin and cryptocurrencies than all the other age groups, according to the study. On the other hand, 54% of people over the age of 60 know nothing about bitcoin and cryptocurrencies. Therefore, senior citizens are least informed about crypto investments.
How Safe Are Americans On Cryptocurrency Investments?
Now, investor confidence in investing assets is quite an interesting topic. Although many people are not solidly confident, their confidence is not shaken either. In fact, 39% of respondents are confident in investing in cryptocurrencies with different levels of confidence. This means that people in the United States are still unsure of where the crypto industry is headed.
The age group between 18 and 29 is the most confident with cryptocurrencies. On the other hand, Americans over the age of 60 make up the largest number of people who do not trust cryptocurrencies. Perhaps this has to do with the difference in technological know-how between the two reasons.
Leading factors in choosing a cryptocurrency exchange platform
When it comes to buying bitcoin, there are many exchange platforms to choose from. Many factors play a crucial role in choosing an ideal platform. According to the study, fees and costs are the most important consideration when choosing an appropriate platform. To be precise, 27% consider transaction fees when choosing a crypto exchange platform. Other considerations include ease of use and whether the platform is regulated. A few people consider the many different coins to choose from and the transaction speed.
While fees and costs are the landing factor that determines the choice of platform in men, women choose a platform mainly depending on the ease of use. Currently, bitcoin trades at just under $ 50,000. However, you do not have to buy a whole coin. Crypto exchanges allow people to buy a fraction of bitcoin depending on the amount you are willing to invest.
Surprisingly, according to the Bakkt survey, 39% of respondents do not know that you can buy a share of bitcoin, especially women. While 63% of respondents are aware that bitcoin is available in portions, only 54% of women have this information. Similarly, almost half of respondents over the age of 60 do not know that you can buy parts of bitcoin. This may indicate a need to spread awareness of bitcoin investments.
The young generation is well versed in crypto investments and knowledge
The study sheds light on how the public perceives bitcoin and cryptocurrencies. The study shows that men are more into cryptocurrency investments than women. Similarly, younger generations are showing great interest in bitcoin and other cryptocurrencies. The situation may change for the better, depending on how the adoption of bitcoin takes place.
This is a guest post by Jerry Goddard. The opinions expressed are entirely their own and do not necessarily reflect those of BTC Inc. or Bitcoin Magazine.
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