Nearly 40% of crypto investors plan to buy crypto next year

[ad_1]

Crypto investors maintain their optimism into 2023 despite the adverse conditions in the current year. Multiple motivating factors could sustain investor enthusiasm. But again, regulation remains a key talking point.

2022 has been a tumultuous year for financial markets. As of today, stocks are down, bonds are down, gold is down, crypto is down, and all eyes are cautiously but hopefully on 2023. Amid all the chaos and bankruptcies, crypto investors seem cautiously optimistic about crypto’s turning point in 2023 Proponents believe that, so far, it is the best-performing asset in all recorded history.

For example, technology stocks have seen an annualized gain of around 30-50% year over year. Cryptos, on the other hand, performed much better. Although these gains should decrease as the network saturates, it is still believed to be in its infancy.

Source: upmyinterest

Adoption can also be exemplified by the AI-powered ChatGPT, which grew from zero to one million users in a short period of time.

Crypto Investor Optimism

Looking back to 2022, people are angry and confused. Many of these people arrived late, when prices were higher, and believed that markets had only gone up. These investors took too much risk, using high leverage. They trusted crypto exchanges like FTX, losing thousands of crypto dollars. As investors resort to legal battles to recoup those losses, they are also looking to 2023 as a turnaround year.

Blockchain.com surveyed 40,000 crypto investors globally for insights into crypto confidence, particularly in 2023, signaling relatively positive sentiment toward crypto investing next year. The report was exclusively shared with BeInCrypto.

Source: Blockchain.com

41% of respondents have invested in crypto in 2022 and 40% intend to buy crypto in 2023. Geographically, Africans had a substantial positive view of crypto. With 50% of Nigerians buying crypto this year and 46% planning to do so next year. In Ghana, the figures were 44% and 60% respectively.

On the other hand, Italians have shown great apprehension towards crypto, with only 31% buying crypto this year and 29% planning to buy it next year.

Motivating factors

One thing that keeps investors bullish is the transparency of crypto networks. While many investors suffered losses, 2022 could be considered one of the worst years for crypto. The impressive fact for major coins like Bitcoin and Ethereum was that both still had to catch up in operations. No transactions were interrupted.

Paralleling the financial crisis of 2007-08, markets froze and banks stopped trading. They needed to know where the counterparty risk was. The lack of information and transparency froze the markets and the Federal Reserve had to intervene. It was a near death experience for the global financial system. It has not been a near death experience for crypto. This shows how vital transparency is. Every transaction can be seen on the blockchain and the funds can be easily tracked.

The second aspect of signaling a positive year for crypto is regulators’ recognition of the importance of decentralized networks. New SEC commissioner Jaime Lizrraga stressed the importance of decentralization and transparency and a lesson learned from this crisis. Therefore, from a regulatory perspective, focusing on these two variables could be perfect for the crypto asset ecosystem in 2023.

The third indicator indicating the nascent stages of the crypto industry would simply be to compare the size of the industry with other financial assets. With the crypto fallout at its peak, the crypto asset ecosystem grew from around $3 trillion to around $800 billion. In context, Apple is a $2.30 trillion company – a single stock.

This gives an idea of ​​how early crypto investors are and how unlikely what happened in crypto could cause a systemic financial crisis.

Warning signs

Although there are several positive indicators, investors remain cautious regarding international and national legislation. The International Organization of Securities Commissions is developing a framework for the crypto industry. It is too early to anticipate the quality of the roadmap for the industry since the recommendations are not due until the end of 2023.

Investors are reluctant to invest too much money before the regulations come into effect. Separately, Bitcoin ETF legislation is underway, but it could take up to two years. A spot ETF would hold real BTC, which could help stimulate the market by giving more people greater exposure to Bitcoin.

On the other hand, South Africa has put in place strict new laws for 2023 to classify Bitcoin as a financial asset. This means that it is not considered a currency and it would be inadvisable to use it that way. The European Union has begun drafting its first set of significant crypto laws. They cover a lot of things, including stablecoins which need to hold bigger reserves to stay legal. Back in the US, stablecoins are also under the microscope and lawmakers are trying to push through a new bill.

There are too many factors to consider to predict the market with certainty. However, the general feeling seems optimistic. With a majority considering 2022 as the bottom and things will go up from 2023.

Disclaimer All information on our website is published in good faith and for general information purposes only. Any action the reader takes on the information found on our website is strictly at their own risk.

[ad_2]