90% of crypto enthusiasts expect inflation to be a real problem

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Up to 90% of crypto enthusiasts anticipate and worry about price hikes, with new research showing inflation is likely to be a real problem.

A survey of an independent panel of 1,010 crypto enthusiasts commissioned by crypto platform Gemini found that 79% of respondents believe inflation will become a big issue over the next five years.

More than half (51%) think inflation is already there, and 41% think it is on the way due to several factors, such as the increase in money thanks to quantitative easing alongside the bottlenecks and restrictions, and the ripple effect on supply chains.

This concern may be the reason investors flock to property, crypto, and stocks. More than four in five (85%) think investing in asset appreciation will be a good idea in times of inflation.

Respondents were also asked to choose the safest investment, among seven types of investment, should inflation continue. With recent real estate auction results defying expectations, it’s no wonder the property is popular, chosen by 41% of those surveyed. Cryptocurrencies and stocks came second – each chosen by 19% zrA43 of respondents – as the least likely to lose value over time during periods of inflation. Nine percent of investors have chosen commodities such as gold, silver and energy.

“As a finite asset, fast growing cryptocurrencies such as Bitcoin can provide a strong inflation hedge against devaluation of fiat currencies,” said Jeremy Ng, Managing Director Asia Pacific at Gemini .

“For this reason, we find that many investors hold cryptocurrencies such as Bitcoin, rather than using them as a form of payment,” he said.

Ng says some investors are worried about Bitcoin’s volatility, but that’s to be expected for a relatively new asset class.

“Bitcoin is still maturing while climbing exponentially. Bitcoin, in particular, has had the highest average return of any asset class over the past decade, ”he said.

“At an average annualized rate of return of over 200%, Bitcoin’s average return is more than 10 times that of the Nasdaq-100 index which was the second-ranked asset class.”

In addition to a growing volume of retail investors, Gemini has partnered with fund management companies, asset managers and semi-institutional investors since its inception.

“Institutional investors entering the market will help cushion Bitcoin’s price fluctuations,” Ng said.

For investors who are nervous about Bitcoin price movements, however, he recommends that they only invest the amount they are comfortable with.

“It is telling that 10% more investors prefer crypto to gold, silver and other commodities,” he says.

“I consider Bitcoin to be 2.0 gold because the two assets share many similar characteristics. The reason it is 2.0 is that Bitcoin trumps gold in many aspects such as scarcity, cost of storage , portability and divisibility “.

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