On August 23, a poll named “Invest in You”, published by CNBC and US-based artificial intelligence-powered market research firm, Momentive found that over 5000 respondents one in 10 people- 11% to be precise- the people of the U.S currently investing in cryptocurrency.

In the poll 5,530 respondents stated various reasons for why they decide to invest in the crypto market. According to the survey, the number of cryptocurrency investors in the U.S doubled in the last year- “Exactly half of the cryptocurrency investors started investing within the last year.”

The poll takes a different angle in the case of gender, irrespective of all racial or ethnic groups. It tells17% of men invest more in cryptocurrency than women, which is 6%. To be divided the poll by different age groups, 15% of young investors (18-34), 11% of middle-aged investors (35-64) and 4% of older investors (65+) invest in cryptocurrency. Generally, only 3% rest of the investors start to invest as they are encouraged by the growth in cryptocurrency over the last year.

60% of those who invest in cryptocurrency say they do so because of the possibility long term growth. 44% of the overall respondents invest because of potential for high growth in a short period of time, 33% do just of the ease of making the own trades and 26% bended towards crypto for the excitement of investing.

Most interestingly, not always investors are influenced by some of the typical narratives for investing in cryptocurrencies. Less than half of the general public (44%) don’t even aware of where they expect Bitcoin to be at the end of the financial year. Though 21% say higher than the current state and 14% say lower than the current market price.

About half of the U.S (in total 45%) tend to think that cryptocurrencies are a high-risk investment. To be exact by the survey, 31% moderate risk, 6% low risk, 9% no risk factor to this high-risk market.

On the other hand, some of the respondents are ready to invest in this high-risk market for the short-term investment opportunity. As the young generation people will invest in crypto to gain the largest return in just 365 days (21% of 18-34 age group, 13% of 35-64 age group and 3% of 65+ age group).

According to the new survey, the investors who are new in the field, more optimistic about cryptocurrency than those who start investing before 2019. 36% among them hope that the price of Bitcoin will be higher that of now, in comparison to 20% of other investors.

Among other races in United States, 19% of Black people, 6% of whites, 13% of Hispanics, 8% of Asians believe cryptocurrency has no threat. The survey also found the fact that the older people get (63%), the more likely to believe the high-risk factor in crypto world.

The Covid-19 pandemic all over the world has an impact on cryptocurrency investment. CNBC poll found that only 5% had invested some of their government stimulus payments in cryptocurrencies over last year.

Instead of the controversies about investment advice on social media platforms, 3% of age group 35-64 said social media influenced them to invest.

Joyashree Dey

CBW - External Analyst

INDIA