11% of U.S. citizens have invested in cryptocurrencies. According to a CNBC research, Momentive Poll, 5% of those who received economic stimulus due to Covid 19 used it to enter the cryptocurrency sector.
The research numbers
The charts show interesting results. In fact, cryptocurrencies are held by 11% of U.S. citizens, who prefer to invest in housing (33%) or stocks (31%). In short, cryptocurrencies are not the most popular investment option.
When asked why respondents did not choose to invest in stocks, bonds, and cryptocurrencies:
- 45% said they don’t have enough funds,
- 21% don’t know how to invest,
- 15% are afraid of the risks.
It is worth noting the 5% who say they prefer classic investments (oil, gold, and real estate).
Those who chose instead stocks, bonds, or cryptocurrencies did so in most cases (73%) before 2019. But there is also a 13% who chose the pandemic year to start.
4% of respondents also said they chose to invest in cryptocurrencies, encouraged by the sector’s growth.
In addition, 70% of respondents chose stocks, bonds, and cryptocurrencies, driven by the long-term growth potential. In contrast, 26% opted for short-term growth. Interestingly, 17% said they found it easy to make this investment thanks to dedicated apps, and 14% found it “exciting.”
However, these are not investments made with frequent regularity. 25% trade less than once every six months, while only 19% trade monthly. There are 5% who trade daily and 10% who say they hardly ever trade.
Speaking of the pandemic, the research notes that 12% of respondents chose to invest in cryptocurrencies due to the pandemic, thus changing their investment strategy. In contrast, 54% of respondents said they did not change their investment strategy due to the pandemic. In 65% of cases, to invest, they used an app, while 23% relied on a website.
Those who chose to invest in cryptocurrencies, bonds, or shares did so in 90% of cases with their own money, while in 9% of cases, they borrowed it. It should be mentioned that 68% of respondents received aid from the U.S. government under the American Rescue Plan. 5% of respondents who received aid from the government invested it in cryptocurrencies. 9% preferred stocks. 69% said they did not invest in any of the options presented by the survey.
Optimism for the future
The survey also takes a look at the future. When asked what type of investment would have the best return in 12 months, 14% point to cryptocurrencies, but 17% point to a single stock. Another 14% point to the S&P 500 Index and 13% to gold. Only 5% believe in treasury bonds, the same percentage for those who believe in oil potential.
One question is devoted to the prediction of the price of Bitcoin at the end of 2021:
- For 21% it will be higher than now,
- for 14% it will be the same as now,
- For another 14%, it will be lower.
New investors seem to be more optimistic about the future of cryptocurrency than those who started before 2019. 36% of them believe that the price of Bitcoin will be higher, while only 20% of “older investors” make the same prediction.
Finally, 45% of survey respondents believe that investing in cryptocurrencies is highly risky, moderately risky for 31%, low risk for 6%. In contrast, 9% of respondents believe there is no risk.