Eleven percent of American households now own cryptocurrency, which shows that cryptocurrency adoption is picking up in the world’s largest economy.
A recent poll conducted by CNBC found that 5,530 respondents gave different reasons for why they invested.
The percentage of men investing in cryptocurrencies is greater than that of women (16% compared to 7%). The same applies to all races and ethnicities.
Younger and middle-aged investors are more likely to invest in cryptocurrency than older investors (15% of 18-34-year-olds, 11% of 35-64-year-olds, 4% of 65+ year-olds).
The popularity of cryptocurrency was only a factor that encouraged 3% of investors to invest.
Investments in cryptocurrency are primarily motivated by longer-term growth potential (60%), quickly-growing potential (44%), ease of doing their own things (33%), and excitement (26%).
Half of the crypto investors started investing within the past year, and most use mobile apps or self-service websites to do their trading (65%) or (23%) respectively.
The continued rise of cryptocurrency is not well received by all. Less than half (44%) of the general public do not know where bitcoin will be at the end of 2021 (21% expect it to be higher, 14% expect it to be about where it is now, and 14% expect it to be lower).
Nearly half (45%) of the respondents say crypto assets are a high-risk investment (31% moderate, 6% low, and 9% none).
While some see cryptocurrency as a short-term investment opportunity, young people believe it will provide them with the greatest return in 12 months (21% of 18-34, 13% of 35-64, and 3% of 65+).
New investors are more optimistic about cryptocurrency than those who began investing before 2019. About one-third of new investors (36%) believe Bitcoin's price will be higher than it is now, compared with 20% of people who have already invested.
Two-thirds of Blacks (19%) believe that cryptocurrency presents no risks (six percent of whites, thirteen percent of Hispanics, eight percent of Asians). Almost two-thirds (63%) of older people think cryptocurrency is high risk (29% of 18-34, 46% of 35-64).
In the meantime, investors based in the United States believe inflation will most impact their personal finances in the next 12 months (20%). Despite this, most investors (54%) say there has been no change in their investment strategy.
18% of investors say they have changed their strategy because of the pandemic, while 16% say they are investing less aggressively.
Social Media Influence;
Social media has become an increasingly important factor in investors' investment behavior, as has technology in general.
Social media is credited by over one in ten (12%) respondents with introducing them to investing. However, young investors have been more affected by the rise of social media.
Among those aged 35-64, 3% reported learning about investing via social media. Among those over 65, only 1% agreed.