Cryptocurrencies the most popular financial asset after stocks
Cryptocurrencies are the most well-known financial asset after stocks. That emerges from a new study. Despite the high level of awareness, many potential investors lack conviction. Why is it?
Cryptocurrencies are among the best-known financial assets
More than every second person is now familiar with cryptocurrencies. This is the result of a study by Toluna , in which 10,500 people from 19 countries took part. The age range is between 18 and 64 years. A total of 57 percent of those surveyed from four continents are therefore aware of Bitcoin and Altcoin. as an investment.
Only stocks are better known. Bonds, fixed-term deposits and ETFs, for example, are less popular. Toluna finds, in some cases, enormous differences between the individual countries represented in the survey.
In emerging countries, for example, there is a much more positive mood towards digital investments. Criticism of them comes relatively often from industrialized countries.
That’s why the masses reject crypto
While 24 percent of respondents from emerging markets said they invest in crypto, the figure is just 13 percent in developed markets. The question arises as to why the proportion of investors is so low, while digital means of payment have already become well known.
46 percent of the participants consider cryptocurrencies to be too risky. This percentage has increased compared to the previous year. In 2021, only 43 percent agreed with this statement. This year’s bear market has many facets.
With Terra, the ecosystem of an entire digital currency crashed . At the same time, the major cryptocurrencies are far from their all-time highs and various companies in the industry are insolvent .
Lack of knowledge about crypto very hindering
In second place of the obstacles: Lack of knowledge about cryptocurrencies. Accordingly, 30 percent of those surveyed do not understand the purpose of modern currencies. This value has improved significantly since 2021. Last year, 40 percent of the participants said their own cluelessness was a hindrance. 22 percent of those surveyed stated that they did not know how to invest in Bitcoin and Altcoin.
Another 30 percent avoid getting involved because they feel the volatility of digital assets is too great. Therefore, another 24 percent consider cryptocurrencies to be too speculative.
The lack of regulation in the industry and acceptance in branches, which is perceived as too low, also received criticism. Other users stated that they lack the personal interest or money to invest.
27 percent consider cryptocurrencies to be unsafe. 13 percent are convinced that manipulating the funds is even easily possible. Only eight percent of those surveyed confirmed the arguments of investment legend Warren Buffett and criticized the lack of productivity of the system.
Trust in cryptocurrencies extremely low
Trust in cryptocurrencies is extremely low. So much so that each additional financial investment enjoys a better reputation among those surveyed. The participants of the survey consider time deposits to be the most trustworthy investment.
Since 2021, confidence in cryptocurrencies and crypto derivatives has dropped significantly. All other financial investments, on the other hand, saw an improvement in reputation. The public image of crypto is particularly bad in developed countries. Stablecoins lost most of their trust due to the decline of TerraUSD.
France currently has the worst reputation. A quarter of crypto investors there want to downsize their portfolios. At the same time, the study shows that people are less impressed by the bear market as soon as they enter crypto. The Hodl sentiment proves to be effective.
Among the countries surveyed, the Philippines comes out on top. 44 percent of the participants are already invested in crypto and plan to spend more soon.