Diving Into Grayscale's Bitcoin Investor Study for 2021 | Part 1
In this short series I'm going to summarize and share the Bitcoin Investor Study Report by Grayscale Investments.
This is their 3rd annual report and while I like the data presented, I'm not a huge fan of how they present that data.
In my next few posts, I'll take their report and share it in a bit more of a "reachable" way for the retail investor (like me). I hope you enjoy my synopsis of their reporting:
"For the third consecutive year, Grayscale surveyed the investor community to explore attitudes and perspectives around Bitcoin. Despite the regular launch of new currencies, Bitcoin continues to pervade discussions among investors, advisors, financial institutions, media, service providers, regulators, and policymakers. Grayscale conducted this third wave of research to assess how perceptions of Bitcoin have shifted since 2019, particularly as it relates to the following topics:
• Familiarity with and interest in Bitcoin (and other
• Profile of investors interested in Bitcoin
• Aspects of Bitcoin that drive investor interest
• Barriers to investing in Bitcoin
• The role Bitcoin plays in one’s portfolio
• Impact of a Bitcoin ETF"
This year's cryptocurrency study showed that investors are increasingly turning to Bitcoin as a safe haven for their money during tough economic times. The digital currency is also being used by people who see it as an investment, rather than just use it like dollars or euros do now in order to buy and sell things on places such as Amazon.
The following passage discusses several key themes from last year’s research into cryptocurrencies: Chief among them was an increase awareness surrounding bitcoin due primarily to its volatility; however there have been other factors at play too - namely investor sentiment changing over time towards owning bitcoins instead of trading.
Bitcoin is becoming more popular with the older generation because they can invest in digital currencies and still have access to traditional investments.
Being an ETF, it allows people who are not as savvy when it comes to technology or finance simple ways into this growing market while bridging their gap between old worlds and new ones by giving them comfort knowing there will always be someone waiting for what you know inside out.
Bitcoin's increasing use among retirees could signal that we'll see a lot of those listeners come back around once something better becomes available.
There are many reasons to take the time and effort needed for an
online survey. It can be difficult, but it will provide valuable information on behalf of your company or organization!
"In this case we surveyed 1,000 United States Consumers from August 12th through 20th 2021" asking about their investment decisions in relation with money management skills as well how much responsibility they had when making these choices- all respondents were ages 25 - 64 years old and had primary or shared responsibility for household financial decision making which involved some form of personal investing over $10k USD total assets excluding workplace retirement plans/real estate); also at least 50K.
The love affair between cryptocurrency and the general public is not a new phenomenon. In fact, it was only last year that more than three quarters (77%) of investors preferred Bitcoin exchanges over other options - but this has all changed in 2021 as 26% now trade via an app or website such eToro and Coinbase!
Bitcoin itself isn't exactly thriving either: with its value dropping by 40%, many people are turning away from investing because they're afraid to lose money; however those who understand how volatile cryptocurrencies can be prefer taking their chances on what could go up rather than down when trading
Demand for Bitcoin has risen tremendously: more than half (55%)
of current investors in bitcoin began investing over the last 12 months.
Investors are eager to buy, with an all-time high placed November 2021 at $100K rather than zero as some were expecting it would be before they invested their money into this cryptocurrency earlier this year when prices dipped significantly from around mid December until February 2020 according to coinbase data which shows how many hodlers there still are today judging by past behavior patterns on what percentage have been holding onto coins purchased between 1 month and 12 months ago.
The vast majority of investors who've sold their Bitcoin have made a profit. In fact, more than 90% of them did so at least partially due to the rise in market segments and use cases such as DeFi--a term used for decentralized finance (DeFIn) or non-fungible tokens (NFTs), which can be seen as alternatives rather than replacements by some experts like Tom Lee from Fundstrat Global Advisors Inc., who said "The block size debate is over."
The Bitcoin futures-based ETF is a step in the right direction for wider scale adoption. With an approval from regulators, more investors are expected to invest their money into this cryptocurrency and make it popular as well!
Posted Using LeoFinance Beta
Hopefully this isn't a sign of a bubble