More than one-third of American investors would be interested in buying Bitcoin, according to a recent study by crypto asset management firm, Grayscale Investments.
The firm, in partnership with financial market research firm Q8, conducted a poll of 1,100 U.S-based investors in March and April and reported that 36% of the surveyed population would like to buy Bitcoin. Per the findings documented in the subsequent report dubbed “Bitcoin: 2019 Investor Study,” that percentage represents a potential market of more than 21 million investors in the general population.
Grayscale, who launched the controversial #DropGold campaign earlier in June, stated that they surveyed respondents to understand why they invest in bitcoin and the reservations that potential investors have about the cryptocurrency in comparison to gold.
The research revealed that the majority of the investors were drawn to the fact that bitcoin investments could be made in small amounts, so that risks and profit could be measured before going all in.
“A majority (83%) were strongly motivated by the idea that they could invest small amounts in Bitcoin today, see how their investments performed, and add to their positions later.”
79% of the population jumped on Bitcoin due to its ability to grow within short periods compared to stocks and bonds. According to Grayscale’s hypothetical calculations, investors that added just 5% in bitcoin between Sept. 25, 2013, to June 30, 2019, would have doubled cumulative returns from 41.9% to 90.9%, using a simulated global 60% stock and 40% bond portfolio.
75% liked the scarcity attribute of bitcoin, and the fact that this means more value for their investment. The research also debunked some misconceptions about the demographics of existing Bitcoin trading investors. Contrary to widespread beliefs that most Bitcoin holders are young ‘uns, Grayscale’s survey discovered that the majority of interested investors are middle-aged, middle-class parents who understand the risks of their investments and can bear them.
However, the common hindrances to investment are security breaches and regulatory inefficacies. Seventy-five percent of all investors and sixty-eight percent of potential investors in disclosed that the use of cryptocurrency for crime is their paramount fear, and they’re not wrong.
According to findings from crypto news outlet The Block’s, hackers have stolen almost $1.39 billion from cryptocurrency exchanges to date.
More Reasons To #DropGold
Grayscale’s efforts towards advocating for investors to choose bitcoin and digital currencies over gold trading has been gaining momentum for quite some time.
The #DropGold campaign featured a thorough comparison of bitcoin and gold, and the benefits of going digital and investing in ‘fast, secure, transparent’ bitcoin instead of ‘pulling your weight in gold.’ The ad paid off, and investments in Grayscale’s Bitcoin Trust (BIT) quickly experienced a 42% increase in Q1 2019 compared to Q4 2018.
Asides Gold bulls snickering at BTC’s acclaimed advantages over their prized metal, the only setback facing Grayscale’s efforts is the indecision of regulators towards making concrete policies for cryptocurrency in the US. It is still unclear how bitcoin and other cryptocurrencies should be regulated and which securities laws should govern crypto operations and transactions.
Baby steps have already been taking towards definitive regulation for crypto in the US– the SEC did release a guidance where they highlighted the differences between tokens and securities. However, the United States Senate Banking Committee is set to hold a hearing on crypto and blockchain regulatory frameworks on July 30, so there’s hope for better days yet.