2021-12-8 00:39 |
The digital investment firm, Grayscale has released a report about Bitcoin investment trends in the US.The report showed a growing appetite for Bitcoin by Americans over the last year, noting that women are more likely to invest in the asset class.The report noted that investors were heavily influenced by Bitcoin’s track record over the years as it has gained value astronomically.
Grayscale has conducted Bitcoin research for the third consecutive year and the results are in favor of Bitcoin. The largest cryptocurrency has risen in prominence amongst US investors as the country grapples with the effects of biting inflation.
The Third Annual Bitcoin Investor StudyGrayscale’s latest report utilized a research methodology of surveying 1,000 US consumers between the ages of 25 and 64 with at least $10,000 in investable assets. The report noted that Bitcoin holders increased to 26% in 2021 from 23% in the previous year with a bulk of investors choosing to invest in platforms like eToro and Coinbase. Before the huge leap in 2021, investors generally preferred a Bitcoin exchange over general trading platforms.
While there has been a sort of historical debate whether Bitcoin is to be seen as a store of value or a payment method, US investors are tilting towards the preference of the asset as a store of value. Grayscale noted that in 2020, this was not the case but the rising inflation rates have turned the tide amongst investors.
“Another sign that investors are increasingly treating Bitcoin as a store-of-value asset is the fact that many are choosing not to sell their position,” reads the report. “Among this cohort, most investors continue to hold their Bitcoin today, underpinning the theory that Bitcoin is viewed as a long-term investment.”
Grayscale’s report indicates that the narrative that Bitcoin is “exclusively a millennial phenomenon” is no longer true. This is because older investors between the ages of 55-64 are showing an affinity for the cryptocurrency in what is a 16% leap over the last year. Adoption of Bitcoin by women has registered an upward trend while the same metric has remained relatively flat in 2021 with investors without a college degree for both sexes rising significantly.
Big Wins For Bitcoin InvestorsGrayscale’s report indicates that most sellers of the assets have recorded profits despite not following the HODLing mantra. “Six out of 10 Bitcoin investors have sold at least some of the digital asset, with 91% of them having done so at a profit,” the report stated. It was revealed by respondents of the survey that the launch of the Bitcoin spot ETF will allow for increased adoption of the cryptocurrency.
42% of Bitcoin investors are seeking greater levels of Bitcoin literacy to understand the new asset class. Older investors indicated higher levels of interest in understanding the risks associated with investing in Bitcoin while conversations on risks are not common amongst younger investors between the ages of 25-34.
Apart from Bitcoin, over half of the respondents indicated awareness towards other cryptocurrencies with Dogecoin and Ethereum topping the list. A quarter had heard of Litecoin, Tether, and Cardano.
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