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Long-term Bitcoin Hodl investors

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Bitcoin has become a new investment front. While the adoption of bitcoin is a work in progress, it has many uses. Some investors hold bitcoin for profit, while others use cryptocurrencies for online transactions.

A new Bakkt survey Now provides us with an overview of the state of bitcoin adoption in the United States. Bakkt is a financial services company specializing in cryptocurrencies. According to the survey, most people have invested in bitcoin and cryptocurrency for long term benefits. In this article, we will explore the survey results in detail. Let’s dig deeper.

About the survey

The study was commissioned by Bakkt and conducted via an online tool in July 2021. It solicited responses from 2,000 consumers across the United States. The survey aimed to map bitcoin and cryptocurrency adoption trends over the past six months and the next six months. The researchers used the Census Bureau’s American Community Survey to assess education, gender, age, geography, and race.

Bitcoin and cryptocurrency investment

According to the study, 48% of those surveyed have invested in bitcoin and cryptocurrencies in the past six months. A significant number (19%) of investors invested less than $ 100. Those who have invested more than $ 1,000 represent 5%. With 69% of respondents under 44, that means most investors in the United States are relatively young.

The bulk of investors of all age groups have invested less than $ 100 in bitcoin and cryptocurrencies. For example, 45% of people between the ages of 45 and 60 own bitcoin and cryptocurrency valued at less than $ 100. The 18-29 age group comes second with 38% and the 30-44 age group third with 36%. Only 32% of people over 60 invested less than $ 100. .

Attractive attributes of Bitcoin and cryptocurrencies

Bitcoin and cryptocurrencies have a variety of uses. According to the Bakkt survey, 58% of Americans have purchased bitcoin or another cryptocurrency in the past six months as a long-term investment. However, 43% of investors hope to make a profit in the short term.

Besides investing, people have also bought bitcoin for online transactions. According to the Bakkt survey, 24% of respondents said cryptocurrencies would allow them to buy online. Likewise, 12% of investors plan to use cryptocurrencies for the in-person purchase of goods and services. Only 11% bought cryptocurrency with the intention of transferring it to someone else, for example to pay a friend or family member.

The main reason for investing in all age groups is the use of cryptocurrency for long-term investment and the accumulation of value. Long-term cryptocurrency investors in the 18-29 and 30-44 age brackets are 35% and 36% respectively, while only 21% of investors between 45 and 60 have purchased cryptocurrencies for a long term investment. In addition, the survey shows that long-term investment in cryptocurrencies only interests 14% of Americans over 60. Looking at one of the popular long-term predictions of bitcoin provided by TradingBeasts, the price of bitcoin is expected to peak at $ 77,221.06 by the end of 2024. Given this fact, younger investors might be wiser to invest in bitcoin than older generations. elderly.

Despite the craze for bitcoin and cryptocurrency in the face of its enormous growth potential, many people show no interest in investing in crypto. According to the survey, 25% of people are not interested in investing in bitcoin and cryptocurrencies in the next six months. Crypto investing only appeals to 32% of the entire sample. About 43% of respondents have a lukewarm approach to this contemporary investment avenue, but 10% of respondents are “very interested”.

The survey breaks down interest in investing in crypto by different age groups. Crypto investments are most attractive to people between the ages of 18 and 44. However, Americans aged 45 to 60 show the least interest, with 33% not interested in bitcoin and cryptocurrency investments.

The most compelling reason for investing in bitcoin and cryptocurrencies is the potential for long-term return on investment. The absence of charges represents 16% of the call. Other factors including ease of access, fear of missing out, lack of centralized control and others are equally appealing. Investors of all age groups cite long-term return on investment as the primary factor in investing in crypto. Specifically, 34% of people between the ages of 18 and 29 have invested in cryptocurrencies for long-term profit. According to the Bakkt survey, fear of missing out is the motivating factor for investing in cryptocurrency among people over 60.

High volatility is the main challenge

Like other investments, investing in bitcoin and cryptocurrency is not without its challenges. Too much volatility is the biggest challenge, according to the Bakkt survey, with 32% of respondents citing the problem. The lack of knowledge about where to start comes second. Other challenges include high prices and lack of confidence in exchanges and third-party brokers.

In terms of gender, too much volatility was the biggest challenge for men. On the other hand, women said not knowing where to start was the biggest obstacle. High volatility was also the biggest barrier across all age groups except people over 60. Seniors have claimed that not knowing where to start is the biggest barrier to investing in crypto.

Levels of Knowledge of Bitcoin and Cryptocurrency in the United States

When it comes to investing in bitcoin, people have different understandings. Some people are enthusiastic and follow bitcoin news very carefully. As a result, they become well versed in the industry. Others are left to wander in the dark. The Bakkt survey sought to find out how familiar Americans are with bitcoin and cryptocurrency investments.

According to the Bakkt survey, 35% of respondents said they knew nothing about bitcoin and cryptocurrencies. The good news is that 6% of those surveyed “know a lot”. The others fall in between with insufficient knowledge about 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% compared to 3% for women. Likewise, the percentage of women who know nothing about cryptocurrencies is higher at 45% compared to 24% for men.

According to the survey, people between the ages of 30 and 44 know a lot more about bitcoin and cryptocurrencies than any other age group. In contrast, 54% of people over 60 don’t know anything about bitcoin and cryptocurrencies. Therefore, seniors are the least informed about crypto investments.

How Confident Are Americans In Investing In Cryptocurrency?

However, investor confidence in investment assets is quite an interesting subject. Although many people are not strongly confident, their confidence is not shaken either. In fact, 39% of respondents are confident in cryptocurrency investments with varying levels of confidence. This means that people in the United States still don’t know where the crypto industry is heading.

The age group between 18 and 29 is the most confident with cryptocurrencies. On the other hand, Americans over 60 make up the largest number of people who have no faith in cryptocurrencies. This is perhaps due to the disparity of technological know-how between the two fields.

Main factors when choosing the cryptocurrency exchange platform

When it comes to buying bitcoin, there are plenty of exchange platforms to choose from. Indeed, many factors play a critical role in choosing an ideal platform. According to the survey, the main consideration when choosing a suitable platform is the 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 are the landing factor determining platform choice for men, women choose a platform primarily based on ease of use. Currently, Bitcoin is trading at just under $ 50,000. However, you don’t have to buy an entire part. Crypto exchanges allow people to buy a fraction of bitcoin depending on how much you are willing to invest.

Surprisingly, according to the Bakkt survey, 39% of respondents are unaware that you can buy some bitcoin, especially women. While 63% of those surveyed know that bitcoin is available in portions, only 54% of women have this information. Likewise, nearly half of those over 60 don’t know you can buy portions of bitcoin. This may indicate a need to publicize the bitcoin investment.

The younger generation is well acquainted with crypto investments and knowledge

The survey sheds light on how the public perceives bitcoin and cryptocurrencies. The survey shows that men are more into cryptocurrency investing than women. Likewise, the younger generations are showing great interest in bitcoin and other cryptocurrencies. The situation could change for the better depending on how the adoption of bitcoin unfolds.

This is a guest article by Jerry Goddard. The opinions expressed are entirely their own and do not necessarily reflect those of BTC Inc. or Bitcoin Magazine.