Majority of Bitcoin Owners Started Investing in the Past Year, Grayscale Study Finds

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Demand for Bitcoin increased in 2021, according to the new Grayscale Bitcoin Investor study, which shows that 55% of respondents started investing in crypto in the past year.

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“The results of this year’s study confirmed a trend we’ve seen throughout the year – the growing adoption of bitcoin and digital assets, more broadly, marked by increased attention to this asset class and a increased institutional interest and allocations, ”David Grider, Grayscale’s Global Head of Research, told GOBankingRates. “26% of investors surveyed indicated that they already own Bitcoin, which really reinforces the fact that 2021 has been a pivotal year for this ecosystem, as a whole. “

In fact, the Grayscale Bitcoin Investor study found that the slice of Americans who own bitcoin has fallen from 23% in 2021 to 23% in 2020 and most of those investors are “lurking”, with 66% of those having bought bitcoin over 12 months ago, still own it today.

Additionally, of those investors who sold, 91% sold at least some bitcoin at a profit, and 77% of U.S. investors said they would be more likely to invest in bitcoin if an ETF existed.

Bitcoin is hard to ignore

The study notes that it is becoming increasingly difficult for investors to ignore Bitcoin as its price continues to rise.

“The interested market for Bitcoin investment products grew to 59% in 2021, up from just over half (55%) in 2020 and just over a third (36%) in 2019, reflecting growth constant interest, “says the study.

In terms of perception, there has also been a huge shift: Investors have shown a clear preference for Bitcoin as an investment through which they can accumulate long-term returns, as opposed to a currency for making payments. This is a notable change from 2020, when Bitcoin as a currency was the priority of investors more than any other use case, according to the study.

The story continues

This year, however, three times as many investors would consider owning Bitcoin as a store of value investment, rather than a currency. Of these, 37% perceive Bitcoin as a short-term investment to be held for less than a year from which they can make money quickly.

Grider told GOBankingRates that while in developing markets people are more likely to see digital assets used as currency, as evidenced by El Salvador’s recent decision to make Bitcoin legal tender, in developed markets, we We are increasingly seeing digital assets more as a store of value or inflation hedge, similar to digital gold.

Investors are embracing Bitcoin and worrying less about risk than in previous years. The main ones are cyber attacks with 58%, volatility with 53% and regulation with 51%.

The channel through which investors prefer to buy Bitcoin has also evolved over this period. In 2020, more than three-quarters of investors preferred to buy directly through a Bitcoin exchange, while in 2021, 59% of investors expressed a preference for buying Bitcoin through a cryptocurrency trading app, and 35% of investors have expressed a preference to buy Bitcoin directly. by an exchange.

The use of Fintech applications is on the rise

Additionally, more and more investors are using FINTECH applications to gain their cryptocurrency exposure. For example, 30% of investors chose to buy Bitcoin with an electronic wallet or the money app, like Venmo or CashApp. The surge in investors buying Bitcoin through existing FINTECH apps is undoubtedly a key driver for PayPal, one of the biggest fintechs in the market, supporting Bitcoin last year, the study notes.

Bittrex Global CEO Stephen Stonberg told GOBankingRates that the study reveals valuable insight into how Bitcoin adoption successfully transcended into the mainstream this year.

“It’s no surprise that existing fintech apps like Venmo and Paypal have played a big role in bringing new people into the world of cryptocurrency. Of course, it’s also not surprising that the majority of people prefer to buy, sell, and hold their crypto with exchanges, like Bittrex Global, especially because they can provide a safe, secure, and regulated environment for them. keep the crypto, ”added Stonberg.

Bitcoin is no longer just for Millennials

In terms of demographics, the study notes that the idea that Bitcoin is exclusively a millennial phenomenon no longer reflects reality, and in fact, among investors who have shown interest in bitcoin investment products, the largest increase in 2021 was among the older investors.

Ron Levy, CEO and co-founder of The Crypto Company, told GOBankingRates that the study highlights how exciting and growing crypto is.

“This accurately puts Bitcoin’s role in perspective as a door opener for the acceptance of cryptocurrency in our culture and the world, especially as it spans generations,” Levy said. .

Women invest more in Bitcoin

Also of note is that the percentage of female investors who would consider Bitcoin investment products, which increased by 6% in 2021 from 2020 levels, while the male investor segment in this category has remained relatively stable.

See: From How To Get A Rise To Invest In Crypto: The Best Columns Of The Year From Financially Wise Women

However, interest in Bitcoin investment products is still the most robust among young male investors, the study notes.

“As digital currencies gain acceptance more and more investors – across all demographics – are interested in devoting to them, including a higher percentage of female investors,” said Grider of Grayscale. .

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This article originally appeared on GOBankingRates.com: Majority of Bitcoin Owners Started Investing in the Last Year, Grayscale Study Finds

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