In 2017, rising cryptocurrency prices introduced a lot of new people to Bitcoin and altcoins. Even so, not everyone is convinced this is a wise decision. A new study by Gem and Harris Insights shows four in ten Americans don’t care too much about cryptocurrency.
Crypto Investing is Still Risky
Despite the overall positive sentiment associated with Bitcoin, some key struggles remain. It has become apparent the world’s leading cryptocurrency is a speculative investment vehicle first and foremost. This makes it very appealing to investors, even though not everyone thinks along the lines. Americans, especially, have been resistant to recognizing the future potential Bitcoin and altcoins bring to the table.
A new study by Harris Insights and Gem depicts the current mindset of Americans. Over four in ten respondents admit they aren’t investing in cryptocurrency. They are not doing so now, nor will they ever. That is a very disappointing outcome, albeit one that is also easy to explain. Volatility in the cryptocurrency industry works both ways and creates a lot of uncertainty.
Throughout most of 2018, prices of all cryptocurrencies have declined significantly. A lower price should, in theory, get more users excited about investing in Bitcoin. That is not the case, as it further illustrates how quickly money can be lost in this industry. The current lack of active Bitcoin regulation isn’t helping matters much either.
Gem founder and CEO Micah Winkelspecht offers his own insights into the study’s results:
We find that younger people with less income are more willing to put money in crypto. […] My guess is that crypto is of the digital age. And the younger generation is of the digital age and used to doing everything on the internet.
The cryptocurrency space is still in its Wild West phase, so there’s potentially some of that going on. […] When you have less to protect, you are more willing to take the risk.
Positive Industry Developments
While 41% of Americans may not currently be willing to invest in Bitcoin, that could change in the not-so-distant future. A lot of positive developments are taking place in the cryptocurrency industry. Most of these changes will make investing in Bitcoin and altcoins more straightforward and approachable.
Speculators don’t have to buy Bitcoin directly to invest in it. The launch of Bitcoin futures has introduced another viable investment vehicle. While a Bitcoin ETF has not yet been approved, numerous exchanges offer margin trading features. It is a different way of “betting” on how Bitcoin will evolve, albeit with additional risks and rewards.
In the end, a small study among Americans only tells part of the story. Interest in Bitcoin isn’t waning. While investing may not seem too appealing in the US, other countries are not passing up on these opportunities. Numerous regulatory changes across the world will bring more legitimacy to cryptocurrency. That will, in turn, affect the public’s opinion on Bitcoin, even in the United States.
Do you think that US investor interest in Bitcoin will increase? What will it take to bring it about? Let us know in the comments below.
Images courtesy of Shutterstock