Why Do People Buy Bitcoin

Bitcoin is fast emerging as the people’s new investment tool. With the growing adoption rate, it has many different uses. You see, many investors stock bitcoins for profits, and many of them use them for their online transactions.

A recent survey done by Bakkt will give you a concise view of the bitcoin adoption rate in the United States. Bakkt is a well-known company that provides different financial services with a primary focus on different cryptocurrencies. The survey revealed that most people who invested in bitcoin and other cryptocurrencies looked for its long-term gains. This article will discuss why people who buy bitcoin hold on to it for a long time.

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The Bakkt Survey

Bakkt surveyed with an online tool in July 2021. About 2000 people from all over the USA were contacted for the response. The survey’s primary purpose was to chart the adoption trends of cryptocurrency, specifically bitcoin, in the past six months and for the coming six months. The researchers collected the data related to the education, age, geography, race, and age of the people using the American Community Survey by the Census Bureau.

The Cryptocurrency and Bitcoin Investment Trends

The study concluded that about 48% of the respondents invested in cryptocurrency and bitcoin in the past six months. Another significant finding was that about 19% of people had invested less than 100$, and 5% invested more than 1000$. It was also found that 69% of the investors were aged less than 44 years. It meant that most of the investor population was relatively young.

The main section of the investors that invested less than 100$ in cryptocurrency and bitcoin were spread across various age groups. The study showed that 45% of the people who invested less than 100$ were aged 45 to 60 years. 38% of people were from 18 to 29, and 36% of investors were from the age group 30-44 years. Only 32% of people who invested less than 100$ were above the age of 60 years.

Addressing the Properties of Cryptocurrency and Bitcoin

Cryptocurrency and Bitcoin have many different functions. The survey by Bakkt also concluded that about 58% of Americans who bought Bitcoin and other cryptocurrencies thought of it as a long-term investment. Only 43% of the investors took it as a short-term investment. Another important use of bitcoin besides investment was to make online transactions. The survey also revealed that 24% of the respondents said that cryptocurrency enabled them to make online purchases. Only 12% of investors intend to use cryptocurrency for offline purchases. 11% of people make payments or transfer cryptocurrency to family or friends.

The main reason for people considering cryptocurrency for investment was looking for long-term investment and its growing value. This trend was seen in all age groups. People between the age groups of 18 to 29 and 30 to 44 with 35% and 36% respectively and age group 45 to 60 years with 21% people considered cryptocurrency for a long-term investment. The survey also showed that only 14% of Americans above the age group of 60 considered cryptocurrency a long-term investment. A famous bitcoin prediction by TradingBeasts said that the bitcoin price is expected to reach a maximum of $77,221.06 by the start of the year 2025. This prediction may attract the younger generation more than the old to consider investing in bitcoin.

Even though bitcoin and other cryptocurrencies showed colossal growth potential, many people were still not interested in investing in them. The survey also showed that about 25% of the people were not interested in investing in the next six months in any cryptocurrency or bitcoins. Only 32% of the people were interested in crypto-investment of any sort, whereas 43% of the people did not show much response to this growing investment avenue, and only 10% of people were very interested in making this investment.

The survey divided the people into different age groups as per their interest shown for crypto-investment. According to this survey, people between 18 to 44 years of age were most interested in investing in cryptocurrency, while 33% were not interested. The most convincing reason people want to invest in bitcoin is its growth potential and return on investment. The other primary reason was the lack of fees. Other reasons included fear of missing out, ease of use, and decentralization. But the main reason seen in all age groups was the long-term return on investment. People of the age group 18 to 29 accounted for 34% of people who wanted to invest for a long-term profit on investment. People above the age of 60, though, saw the fear of missing out as a big reason to invest in cryptocurrency.

The Leading Challenge of the Cryptocurrency Investment

Any investment avenue you consider comes with some challenges, and the same applies to bitcoin and cryptocurrency. The Bakkt survey revealed that volatility is the biggest challenge in crypto-investment, as 32% of the respondents pointed out. The second major challenge was not knowing where to start. Lack of confidence in third-party exchanges and high prices were the other reported challenges.

It was mainly men who reported the volatility as the main challenge, and women said they did know where to start as the biggest problem. Even people aged more than 60 years saw volatility as the biggest challenge for cryptocurrency investment. 

Knowledge Levels of Bitcoin and Cryptocurrency in the US

When you talk to people about crypto-investment, you can see that the knowledge level varies much. Some people are very much interested and follow bitcoin and related news very religiously. Therefore they know in and out of the industry. Many others did not know much about the industry. The survey by Bakkt also attempted to throw some light on the knowledge level of people in the US about the various cryptocurrencies, including bitcoins.

The survey revealed that 35% of people said that they did not have any knowledge about it. The only relief was the 6% of the people who said they understood cryptocurrencies well. The rest of the people had insufficient knowledge.

Going by the genders, men had more knowledge as compared to women about investment. In terms of percentage, 9% of men had investment knowledge compared to only 3% of women. On the other hand, 24% of men and 45% of women said they did not know about crypto-investment. The survey noted that the age group that knows the most about bitcoin ranged from 30 to 44 years. Alternatively, 54% of people over 60 years do not know anything about crypto-investment and bitcoin. The survey concluded that the senior citizens were the minor informed age group.

Crypto-Investment: The US Confidence factor

The survey also aimed to see how confident the American people were when investing in bitcoin and other cryptocurrencies. It showed that though many people were very sure, they still had much trust in cryptocurrency. The survey revealed that 39% of people trusted cryptocurrencies and investment, but at various levels. This shows that people in the US are still unsure how cryptocurrency will unfold in the future. The very young population aged 18 to 29 are the most confident ones, whereas most people above 60 years had no confidence at the end of cryptocurrency. The main reason attributed to this could be the level of knowledge about cryptocurrencies.

Factors that affect the choice of Cryptocurrency exchange platforms

Many exchange platforms facilitate the buying of cryptocurrencies that you can choose from. Many factors affect people’s choice to select an ideal venue. The leading factor that affects the choice of platform is the fees and associated costs. The survey revealed that about 27% of people consider transaction fees the main factor in choosing an exchange platform. A few others looked for ease of use and whether the platform is regulated as their primary element. People talked about the types of coins and the transaction speed as the main deciding factors.

Where men chose fees and cost as their deciding factor, women opted for the ease of use to select an exchange platform. The current per bitcoin costs are about $50,000, and you need not buy a whole coin. Depending on your investment amount, you can buy even a fraction of a bitcoin.

A surprising result from the Bakkt survey said that only 39% of respondents, mainly women, did not know that you can buy a fraction of bitcoin. Only 54% of women have information about bitcoin partial buying. In the age group of 60 years and above, about half did not know that you can buy bitcoins in portions. There is still a huge need for awareness in people about crypto-investments.

Crypto-knowledge and the Young Generation

The survey showed how people in various age groups perceive different cryptocurrencies and specifically bitcoins. The survey results showed that it was primarily men who made the investment in cryptocurrency than women. Also, the younger generation was more aware and interested in buying bitcoin and other cryptocurrencies. But with more knowledge and awareness of the exchanges, trading, and other factors, there can be considerable changes in the adoption of bitcoins.

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