Every day there are new signs that the once-called magic money of the Internet is establishing itself as the preferred store of value for investors. This is suggested by the latest survey by the Japanese exchange bitFlyer, where Bitcoin is listed as the fourth most selected investment asset by the three thousand participants, still above gold.
The study was published by the US section of the exchange house on February 4. According to your query, the most popular investment instrument continues to be stocks, with 54% of the percentage. But, despite competing with long-established and well-established vehicles in the collective imagination, the technology of just 12 years of existence has risen above mutual funds, bonds, foreign currencies and commodities, such as gold. In addition to stocks, only real estate and insurance and certificates of deposit outperform Bitcoin.
Bitcoin establishes itself as the fourth most attractive investment for Americans. Source: bitFlyer.
The objective of bitFlyer with this survey was to delve into “the state of investment and cryptocurrencies in the United States and Japan, and explore the differences between both markets.” The enormous growth of the cryptocurrency industry during 2020, driven by large investments by renowned financial institutions, sparked the exchange’s interest in calibrating the investment outlook for a population of 1,000 Americans and 2,000 Japanese, in an age range of 20 and 59 years old.
The differences between the two markets are immediately apparent when it is contrasted that, while 82% of Americans have their wealth placed in investment vehicles, only 31% of Japanese have investments.
30% of Americans have at least 1% to 10% of their wealth in investment assets. Source: bitFlyer.
It is striking that, despite the fact that Japan, in 2017, was one of the first countries in the world to legalize Bitcoin as a payment method, 78% of those surveyed in the Asian nation have a negative perception of cryptocurrencies. For its part, in the United States, the valuation of these digital assets has varied over the years, since now 76% of the sample have a favorable view of Bitcoin and cryptocurrencies, of which 15% are currently using them.
To invest or not to invest in cryptocurrencies?
Four factors appear to be driving the optimistic sentiment of Americans in cryptocurrencies and, above all, in Bitcoin. First, as has happened in other bullish periods in the industry, the price increase dazzles and attracts. “Cryptos are growing at a high speed and I feel like they will continue to grow and be very profitable,” replied a twenty-something American.
But, unlike bull runs of the past, it seems that Bitcoin’s value propositions have already caught on in public opinion. “I feel like (cryptocurrencies) put you in control, unlike the big Wall Street firms. You can buy 24/7. Some have a fixed amount, unlike shares, of which you can always issue more, “said a man in his fifties, while a woman in her twenties perceives that the momentum of cryptocurrencies is linked to the decline of national and global currency systems.
76% of Americans have a favorable perception of investments in cryptocurrencies. Source: bitFlyer.
Finally, the institutional investment of 2020 was one of the biggest catalysts to take Bitcoin as a long-term reality. “Large institutions have started buying crypto, which could lead to scarcity and therefore value. That, and that after a decade they seem not to be going anywhere for now, “said a man in his twenties.
However, volatility seems to continue to play against the general comfort with respect to cryptocurrencies, as recent studies reviewed by CriptoNoticias have already suggested. Also, the dissemination of news of hacks and other risks by the mainstream media continues to fuel the feeling of risk already well-established among some people. Finally, Necessary learning curve continues to drive investors away, although bitFlyer believes that, as people learn more about cryptocurrencies, the perception will change, as it has indeed happened.
Investments in 2021
Looking ahead to 2021, while 68% of Americans plan to invest or continue to invest in financial assets, 82% of Japanese will not make any investment. According to the responses of those surveyed, the most popular reason for investing this year is with a view to prepare for the future and increase long-term wealth.
The events of 2020, coupled with falling interest rates, caused more people to pay attention to the markets in order to capitalize on a potential economic rebound in 2021, says bitFlyer.
Bitcoin has established itself as one of the most attractive instruments as a safeguard of value in recent months by large corporations. Faced with the risks of a fall in the dollar and other national currencies due to expansionary monetary policies, treasuries such as MicroStrategy’s have opted for this vehicle to protect themselves, considering it a dematerialized and optimized version of gold. Based on this awareness, they have been given the task of disseminating the benefits of this technology in talks, which have been covered by CriptoNoticias.