2023-7-11 09:00 |
Investors' tendency to prioritize conventional metrics over crypto-specific factors has implications for both Bitcoin the network and Bitcoin the asset. The Digital Disclosure Survey conducted by Broadridge Financial Solutions sheds light on the fact that key metrics such as tokenomics and network performance are often overlooked by investors. This finding raises questions about the extent to which investors understand the fundamental aspects of Bitcoin and its underlying technology.
As the largest and most well-known cryptocurrency, Bitcoin serves as both a decentralized network and a digital asset. Network performance, one of the metrics commonly disregarded by investors, is crucial for assessing the health and functionality of the Bitcoin network. But only 28% of participants considered it important, putting it outside of the top five factors. Understanding how the network operates, how resilient it is to change and to disruption and the different projects currently being built on Bitcoin are vital pieces of information for any investor in the market.
Moreover, the study's findings regarding investors' preference for traditional finance metrics highlight a potential gap in their understanding of Bitcoin as an asset. Tokenomics, the economic aspects of a coin, play a significant role in determining its value and future supply. Despite this, only 16% of respondents indicated that tokenomics was a factor that they considered. By overlooking the rock-solid tokenomics that serve as a foundation for bitcoin, investors may miss crucial insights into the potential long-term sustainability and growth prospects of bitcoin.
The survey's results also have implications for Bitcoin's transparency and trustworthiness as an asset. Rob Krugman, Chief Digital Officer at Broadridge, emphasized the importance of transparency for market survival and growth. Enhancing disclosure practices and providing standardized, easily accessible metrics for tracking bitcoin's performance can foster trust among investors, and help lead to approval for developments like a spot Bitcoin ETF.
Furthermore, the study's revelation that 65% of investors view their crypto holdings as long-term investments aligns with the popular perception of bitcoin as a store of value. Bitcoin's limited supply and decentralized nature have attracted long-term investors seeking an alternative to traditional fiat currencies and store-of-value assets like gold.
Overall, the Digital Disclosure Survey underscored the need for investors involved with Bitcoin, to consider a broader range of metrics that specifically apply to cryptocurrencies. By recognizing the significance of network performance, tokenomics and other crypto-specific factors, investors can make more informed decisions regarding the viability and attractiveness of bitcoin both as a network and as an asset.
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