Bitcoin has emerged as a new investment front. Although bitcoin adoption is a work in progress, it has numerous uses. Some investors hold bitcoin for profits, while others use cryptocurrencies for online transactions.
A new survey by Bakkt now provides us with a birds-eye view of the state of bitcoin adoption in the United States. Bakkt is a financial service company with a focus on cryptocurrencies. According to the survey, most people have invested in bitcoin and cryptocurrency for long-term benefits. In this article, we shall explore the survey findings in detail. Let’s delve right in.
About The Survey
The study 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 survey aimed to map the bitcoin and cryptocurrency adoption trends in the past six months and the coming six months. The researchers used the American Community Survey by Census Bureau to weigh education, sex, age, geography and race.
Bitcoin And Cryptocurrency Investment
According to the study, 48% of the respondents have invested in bitcoin and cryptocurrencies in the past six months. A significant number (19%) of the investors have invested less than $100. Those who have invested more than $1,000 make up 5%. With 69% of the respondents below 44 years, this means that most of the investors in the U.S. are relatively young.
The bulk of the investors across all age groups have invested less than $100 in bitcoin and cryptocurrencies. For instance, 45% of people between 45–60 years old own bitcoin and cryptocurrency worth less than $100. The 18–29 age group comes in second at 38% and the 30–44 age group comes in third at 36%. Only 32% of people above 60 years have invested less than $100. .
Appealing Attributes Of Bitcoin And Cryptocurrencies
Bitcoin and cryptocurrencies have varied uses. According to the Bakkt survey, 58% of Americans have purchased bitcoin or other cryptocurrency in the past six months as a long-term investment. However, 43% of the investors hope to make a short-term profit.
Besides investment, people have also bought bitcoin for online transactions. According to the Bakkt survey, 24% of the respondents have said cryptocurrencies will enable them to purchase online. Similarly, 12% of the investors plan to use cryptocurrencies for the in-person purchase of goods and services. Only 11% have bought cryptocurrency intending to transfer to someone else, for example, to pay a friend or family member.
Using cryptocurrency for long-term investment and accumulating value is the main reason for investment across all age groups. Long-term cryptocurrency investors in the 18 to 29 and 30 to 44 age groups are 35% and 36%, respectively, while only 21% of the investors between 45 to 60 have bought cryptocurrencies for long-term investment. Additionally, the survey shows long-term cryptocurrency investment only appeals to 14% of Americans above 60 years. Looking at one of the popular bitcoin long-term predictions provided by TradingBeasts, the bitcoin price is forecasted to reach a maximum price of $77,221.06 by the end of 2024. Given this fact, younger investors might be smarter about investing in bitcoin than older generations.
Despite the bitcoin and cryptocurrency craze at its massive growth potential, many people show no interest in crypto investment. According to the survey, 25% of the people are not interested in investing in bitcoin and cryptocurrencies in the next six months. The crypto investment only appeals to 32% of the whole sample. About 43% of the respondents have a lukewarm approach toward this contemporary investment avenue, but 10% of the respondents are "very interested."
The survey breaks down the interest in crypto investment by different age groups. Crypto investment appeals most to people between 18 and 44. However, Americans between 45–60 years show the least interest, with 33% being uninterested in bitcoin and cryptocurrency investment.
The most compelling reason for investing 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 ease of access, fear of missing out, lack of centralized control and others, have equal appeal. Investors across all age group distributions quote long-term return on investment as the leading factor for crypto investment. Specifically, 34% of people between 18 and 29 have invested in cryptocurrencies for long-term profit. According to the Bakkt survey, the fear of missing out is the motivating factor for cryptocurrency investment to people above the age of 60.
High Volatility Is The Leading Challenge
Like other investments, bitcoin and cryptocurrency investment is not without its challenges. According to the Bakkt survey, too much volatility is the biggest challenge, with 32% of the respondents singling out the problem. Lack of knowledge on where to start comes second. Other challenges include high prices and lack of trust in third-party exchanges and brokers.
In terms of gender, too much volatility was the biggest challenge to men. On the other hand, women said not knowing where to start posed the biggest hurdle. High volatility was also the biggest hurdle in all age groups save for the people above 60 years. The senior citizens claimed not knowing where to start was the biggest hindrance in crypto investment.
Bitcoin And Cryptocurrency Knowledge Levels In The U.S.
When it comes to bitcoin investment, people have varying understandings. Some people are enthusiastic and follow bitcoin news quite keenly. As a result, they become well versed in the industry. Others are left wandering in the dark. The Bakkt survey sought to find out how conversant Americans are in bitcoin and cryptocurrency investment.
According to the Bakkt survey, 35% of the respondents said they do not know anything about bitcoin and cryptocurrencies. The good news is that 6% of the respondents "know a lot." The rest fall in between with insufficient knowledge about the industry.
In terms of gender, men are more conversant about bitcoin and cryptocurrency investment than women. The portion of men who "know a lot'' is 9% compared to 3% in women. Similarly, the percentage of women who do not know anything about cryptocurrencies is higher at 45% compared to 24% in men.
People between 30 and 44 years know a lot more about bitcoin and cryptocurrencies than all the other age groups, according to the survey. On the other hand, 54% of people above 60 years old do not know anything about bitcoin and cryptocurrencies. Therefore, senior citizens are least informed about crypto investment.
How Confident Are Americans In Cryptocurrency Investment?
Now, investors' confidence in investment assets is quite an interesting topic. While many people are not solidly confident, their trust is not shaky either. In fact, 39% of the respondents are confident with cryptocurrency investment with varying trust levels. This means people in the U.S. are still unsure of where the crypto industry is headed.
The age bracket between 18 and 29 is the most confident with cryptocurrencies. On the other hand, Americans above 60 years make up the biggest number of people who have no trust in cryptocurrencies. Perhaps this has to do with the disparity of technological know-how between the two grounds.
Leading Factors When Choosing Cryptocurrencies Exchange Platform
When it comes to buying bitcoin, there are numerous exchange platforms to choose from. Indeed, numerous factors play a critical role in choosing an ideal platform. According to the survey, the leading consideration when choosing a suitable platform is fees and cost. 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 variety of coins to choose from and the speed of transactions.
While fees and cost is the landing factor determining the choice of platform in men, women choose a platform mainly depending on the ease of use. Currently, bitcoin is trading at just under $50,000. However, you don’t 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 the respondents do not know you can buy a part of bitcoin, especially women. While 63% of the respondents are aware that bitcoin is available in portions, only 54% of the women have this information. Similarly, almost half of respondents above 60 years do not know you can buy portions of bitcoin. This may point to a need to spread awareness about bitcoin investment.
Young Generation Is Well Versed in Crypto Investment and Knowledge
The survey sheds light on how the public perceives bitcoin and cryptocurrencies. The survey shows that men are more into cryptocurrency investment than women. Similarly, younger generations exhibit high interest in bitcoin and other cryptocurrencies. The situation could change for the better depending on how the adoption of bitcoin takes place.
This is a guest post by Jerry Goddard. Opinions expressed are entirely their own and do not necessarily reflect those of BTC Inc. or Bitcoin Magazine.