Bitcoin makes inroads with young American investors

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Highlights of History 6% of U.S. investors now own bitcoin, up from 2% in 2018, 13% of investors under 50 own, versus 3% of older investors Fear that bitcoin is “very risky ” decreased

WASHINGTON, DC – Over the past three years, bitcoin has gained traction with U.S. investors in terms of awareness, interest, and ownership. Although few investors own it overall, there is more momentum among investors under the age of 50.

Six percent of U.S. investors – defined as adults with $ 10,000 or more invested in stocks, bonds, or mutual funds – report owning bitcoin. This is an increase from 2% in 2018. But ownership rose 10 percentage points, to 13%, among investors aged 18 to 49. It remains minimal among investors aged 50 and over; only 3% say they own it, compared to 1% three years ago.

Percentage of U.S. investors who currently own Bitcoin

Which of the following statements applies to you? You currently own bitcoins; you will likely buy bitcoin in the near future; you are intrigued by bitcoin but won’t be buying it anytime soon; you have no interest in buying bitcoin?

% Currently owns bitcoin

May 2018 June 2021 Change%% pct. points. American investors 2 6 +4 18 to 49 3 13 +10 50 and over 1 3 +2 Gender Men 3 11 +8 Women 1 3 +2 Total investments $ 100,000 or more 2 8 +6 Less than $ 100,000 0 6 +6 US investors are adults with $ 10,000 or more invested in stocks, bonds or mutual funds, inside or outside a Gallup Panel retirement fund

Bitcoin ownership is similar across all levels of investor assets – 8% of those with less than $ 100,000 invested and 6% of those with $ 100,000 or more invested currently own it.

Moreover, Gallup finds that male investors are more than three times as active as female investors in the bitcoin market, with 11% of male investors and 3% of female investors now owners.

These results come from the Gallup Investor Optimism Index survey for the second quarter, conducted June 22-29.

Bitcoin ownership can be contrasted with the more traditional investments that U.S. investors rely on. For example, 84% of investors say they have invested money in stock index funds or mutual funds, 67% say they own individual stocks, and 50% have bonds. At 6%, owning bitcoin is more like gold, which 11% of investors say they own.

Fewer investors now Bitcoin-Averse

The potential market for bitcoin among existing U.S. investors has also expanded since 2018.

In addition to the 6% who currently own bitcoin, an additional 2% say they will likely buy bitcoin in the near future. In 2018, less than half of 1% planned to buy it. Thirty-four percent, up from 26% in 2018, say they are intrigued by bitcoin but “won’t be buying it anytime soon.”

That leaves 58% who say they have no interest in buying bitcoin, up from 72% in 2018.

Connecting US Investors to Bitcoin Ownership

Which of the following statements applies to you?

May 2018 June 2021%% You currently own bitcoin 2 6 You will probably buy bitcoin in the near future <1 2 You are intrigued by bitcoin but won't buy it anytime soon 26 34 You have no interest in buying one bitcoin day 72 58 American investors are adults with $ 10,000 or more invested in stocks, bonds or mutual funds, inside or outside a Gallup Panel retirement fund

The bitcoin averse group is now well below the majority level (38%) among investors aged 18 to 49. But, at 70%, it continues to be the dominant position of older investors. The gender gap is less pronounced on this metric than in terms of bitcoin ownership, with 55% of male investors and 61% of female investors reporting no plans to buy bitcoin.

American investors who have no interest in buying Bitcoin

May 2018 June 2021 Change%% pct. points. American investors 72 58 -14 18 to 49 56 38 -18 50 and over 80 70 -10 Gender Men 66 55 -11 Women 78 61 -17 Total investments $ 100,000 or more 74 63 -11 Less than $ 100,000 66 50 -16 American investors are adults with $ 10,000 or more invested in stocks, bonds or mutual funds, inside or outside a Gallup Panel Retirement Fund Awareness and Perception of risk

Two factors that could play a role in the popularity of bitcoin with investors are how well they know it and how much they view it as a risky investment. Both have become more bitcoin-friendly since 2018.

The percentage of US investors who say they have heard of and know something about bitcoin or other cryptocurrencies has risen to 38%, from 29% in 2018. This includes even bigger jumps in familiarity at the level of the majority among male investors (17 points, at 55%) and investors aged 18 to 49 (14 points, at 62%). In contrast, only 24% of female investors and people aged 50 and over say they are familiar with bitcoin, which is little changed from 2018.

American investors who have heard of Bitcoin and know something about it

Are you familiar with bitcoin or other online currencies, also known as cryptocurrencies?

% Heard about them and know something about them

May 2018 June 2021 Change%% pct. points. American investors 29 38 +9 18 to 49 48 62 +14 50 and over 19 24 +5 Gender Men 38 55 +17 Women 20 24 +4 Total investments $ 100,000 or more 25 38 +13 Less than $ 100,000 39 39 0 American investors are adults with $ 10,000 or more invested in stocks, bonds or mutual funds, inside or outside a Gallup Panel retirement fund

Almost all investors perceive bitcoin as a risky investment to some extent – but the percentage calling it “very risky” has risen to 60%, from 75% in 2018. Most others, now 35%, consider it ” a little risky “. “, while only 5% think it is” not too risky “or” not at all risky “.

While the majority of most subgroups of investors still consider bitcoin to be very risky, less than half of investors aged 18 to 49 currently think so, up from 71% in 2018.

American investors who consider Bitcoin to be very risky

What is your take on how risky bitcoin is as an investment – very risky, quite risky, not too risky, or not at all risky?

% Very risky

May 2018 June 2021 Change%% pct. points. American investors 75 60 -15 Gender Men 83 61 -22 Women 67 59 -8 18 to 49 years 71 47 -24 50 years and over 77 68 -9 Total investments $ 100,000 or more 79 63 -16 Less than $ 100,000 67 54 -13 American investors are adults with $ 10,000 or more invested in stocks, bonds or mutual funds, inside or outside of a retirement fund Gallup Panel Bottom Line

Three years ago, a very small percentage of investors reported owning bitcoin, most said they had little knowledge of it, and the majority – regardless of gender or age – expressed limited interest in buying it. Since then, the price of bitcoin has risen by more than 300%, far exceeding the market increase of around 40% over the same period. Buying it has become easier for average Americans thanks to crypto exchanges such as Coinbase, Kraken, and Gemini. And large investments in bitcoin by well-known companies such as Tesla, Square and Morgan Stanley (the latter made indirectly through other investments) can give it more mainstream credibility.

Perhaps as a result, bitcoin is approaching general acceptance among U.S. investors, especially those under the age of 50. Not only 13% of these relatively young investors own it, but their knowledge and willingness to buy it has become the majority. levels. Yet stocks, bonds and mutual funds remain the dominant types of investment for investors of all age groups. So, for now, it looks like bitcoin is an ancillary purchase for investors trying to supplement their portfolios and not a replacement for more traditional securities.

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Learn more about how the Gallup Investor Optimism Index works.

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