After Bitcoin was able to go up to almost $20,000 in 2017, things have changed for cryptocurrencies. Its popularity has reached mainstream attention. Stories of early adopters turned millionaires have also intrigued those who are looking to get a quick profit or two from a tech that some don’t even understand.
On May 7 to 14, Wells Fargo/Gallup Investor and Retirement Optimism Index Survey for the second quarter was conducted. From this survey, we’re able to see how US investors are interested in different cryptocurrencies in the market today.
Who are the Investors?
So who exactly are the investors in this particular survey? The investors included in this survey are American adults that have invested at least $10,000 in stocks, bonds and other investment vehicles outside of their retirement savings account. 1,921 investors were surveyed. The result included 26{4ede17fdd9b4ce8121d01fc4b54913fe84f8215aace504cc657695cefb5329ff} of investors who are interested in investing in digital currencies. However, these investors aren’t buying cryptocurrencies for the short term. Also, 72{4ede17fdd9b4ce8121d01fc4b54913fe84f8215aace504cc657695cefb5329ff} of investors are not interested in cryptos.
As for people who are holding a cryptocurrency, the survey discovered that only 2{4ede17fdd9b4ce8121d01fc4b54913fe84f8215aace504cc657695cefb5329ff} of the respondents actually have a Bitcoin. In addition to this, only 1{4ede17fdd9b4ce8121d01fc4b54913fe84f8215aace504cc657695cefb5329ff} is actually planning to buy in short term.
Still with Limited Awareness
According to the research, 29{4ede17fdd9b4ce8121d01fc4b54913fe84f8215aace504cc657695cefb5329ff} of the respondents have some knowledge about cryptocurrencies. As for the majority, they have heard about cryptocurrencies but they do have limited knowledge about them. And also, 5{4ede17fdd9b4ce8121d01fc4b54913fe84f8215aace504cc657695cefb5329ff} of investors never heard of cryptocurrencies at all.
This isn’t surprising since even those who invest on cryptocurrencies may not actually do the right amount of research when it comes to things that they invest in. And for this reason, the amount raised by ICOs during the half of the year already surpassed the funds raised from last year. You also have a good number of dead coins.
Also, you have the reality that there are a large number of crypto scams out there. And this survey is simply a reflection of this reality. It is also true that Bitcoin is appealing to younger individuals. The survey discovered that 48{4ede17fdd9b4ce8121d01fc4b54913fe84f8215aace504cc657695cefb5329ff} of people aged 18 to 49 know something about Bitcoin compared to only 22{4ede17fdd9b4ce8121d01fc4b54913fe84f8215aace504cc657695cefb5329ff} for investors aged 50 to 64.
Do They Find It Risky?
Price swings are quite common in the world of cryptocurrencies. Just last month, Bitcoin was trading below $6,000. And just this week, Bitcoin was even able to get to $8,500. Bitcoin slipped below $8,000 when the Winklevoss twins’ proposed ETF was shut down yet again by the SEC.
As for the survey, 75{4ede17fdd9b4ce8121d01fc4b54913fe84f8215aace504cc657695cefb5329ff} of its investors consider Bitcoin as a very risky investment. On the other hand, 23{4ede17fdd9b4ce8121d01fc4b54913fe84f8215aace504cc657695cefb5329ff} view the cryptocurrency as “somewhat risky”.
Development in the crypto industry has created different reactions from different investors. There are those that have been alarmed by sudden dips. On the other hand, there are those that remain bullish seeing regulatory changes as a must for the industry. Though US SEC considered Bitcoin and Ethereum as a commodity, you also have to consider the fact that the agency is still tiptoeing regarding Bitcoin ETFs. It has even been considered prone to price manipulation.
