Crypto on the Same Pedestal as Stocks

This week, market research and consumer insights provider, Piplsay, shared the results of a survey conducted on British investors about cryptocurrency. The survey consisted of 6,070 British investors above the age of 18, showing that a growing number of them now view cryptocurrencies as safe investments.

As the survey showed, over 40 percent of respondents described cryptocurrencies as safe, compared to 31 percent who viewed them as dangerous. Another 27 percent responded neutrally. Comparing cryptocurrencies to stocks, 41 percent claimed that both asset classes are on equal risk footing, while 45 percent believe that stocks are still safer than cryptocurrencies.

Of those who expressed concern about cryptocurrencies, almost 30 percent cited the potential for fraud and hacks as their primary concern. 26 percent also expressed concern over regulatory uncertainty, while only 19 percent pointed to the issue of price volatility.

Despite the growing sentiment over cryptocurrencies' safety, 57 percent of respondents claimed that they didn't have any desire to own digital assets. Of these, 46 percent claimed that they stayed away from cryptocurrencies because they had little to no knowledge of the asset class.

At the same time, 46 percent of all respondents also opined that large brands in the country should accept crypto payments. Most of these people cited the recent increased demand for crypto as payment methods as their reason.

Investors' growing desire to trade in cryptocurrencies isn't native to Britain alone. Across the pond, professional investors are also trooping into the crypto space, encouraged by the market's growth over the past year.

Last month, a fund manager survey from Bank of America showed that Bitcoin had become the most crowded trade in the country. Per a Reuters report, 36 percent of respondents in the survey identified the “long Bitcoin” bet as the most crowded trade, beating out “long tech.”

The Bank of America report marked the first time that “long tech” will be knocked from atop its perch since October 2019. It also marks a growing positive investor sentiment for Bitcoin, which was only third on the list in December 2020.

Several fund managers have also been hyping Bitcoin as a safe asset to invest in. Last month, Anthony Scaramucci and Brett Messing of New York hedge fund SkyBridge Capital wrote in an op-ed that Bitcoin is just as safe an investment as stocks or government bonds. The hedge fund managers wrote,

“[…] increased regulations, improved infrastructure and access to financial institutions — like Fidelity — that hold investors' money have made bitcoin investments as safe as owning bonds and commodities like gold, which are also used to balance portfolios.”

With the cryptocurrency market delivering steady returns over other investment classes, investor sentiment remains strong.

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