Few US Investors Own Bitcoin; Even Fewer Think It’s a Safe Investment
On July 27, Wells Fargo and the Gallup Panel co-published results from an online survey conducted May 7-14 on Bitcoin sentiment. In total 1921 U.S. investors participated in this survey.
Most investors have no interest in owning bitcoin
Despite the fact that 96% of U.S. investors have heard of bitcoin, only 2% currently own bitcoin and less than 1% plan to buy it in the near future. While most investors say they have no interest in ever buying bitcoin, about one in four (26%) say they are intrigued but won’t be buying anytime soon.
Men and younger investors knew more about bitcoin
According to the survey, only 29% of investors said they know something about digital currencies, like ethreum. Most of the respondents (67%) say they have heard of these currencies but don’t know much about them, while 5% have not heard of them at all.
Awareness of cryptocurrencies differs by gender and age. Men and younger investors are far more likely than women and seniors to say they know something about bitcoin or other digital currencies. Almost 2 times more men than women knew something about bitcoin.
Among those aged between 18 and 49 years, 48% indicated that they knew something about bitcoin while only 22% of those aged between 50 and 64 years possessed some level of bitcoin knowledge. Among those aged above 65 years, only 16% of them knew something about the cryptocurrency.
The report also states that “[r]elated to the age differences, investors with less than $100,000 in investments (who tend to be younger) are more likely to be familiar with the innovation than those with higher asset levels.”
Lydia Saad, a senior editor at Gallup, wrote in an analysis report:
“Looking to the future, however, many younger investors who currently say they are intrigued may be converted to investors once the currency goes more mainstream.”
Bitcoin’s perceived risk is limiting marketing growth
According to the survey, one of the factors hindering the cryptocurrency’s market is the “widespread perception that trading [bitcoin] is not safe”. Per the poll, 75% of U.S. investors deemed bitcoin to be very risky while 23% said it was somewhat risky. Less than 0.5% thought bitcoin was not risky at all.
In past Wells Fargo/Gallup surveys, results have indicated that most U.S. investors prefer to security over growth. Therefore, it is highly unlikely that the market will reach mass adoption until more investors are educated about bitcoin and other digital assets.
See how other parts of the world view Bitcoin’s perceived risk: Asia’s Appetite for Cryptocurrency is Just Getting Started
“B2B reporter – Content Manager – Contributor – Fintech – Blockchain – Cryptocurrency”
Simon Chou is a B2B reporter and content manager specializing in technology and finance. He has worked with many clients in the fintech and blockchain space. He holds investment positions in bitcoin and other large-cap cryptocurrencies, and has been reporting on cryptocurrency since 2017. Currently, Simon is the content manager for a major cryptocurrency exchange @HybridBlockHQ.