Individual Investors in US View Bitcoin as Risky
A recent poll reveals that Bitcoin and cryptocurrency are viewed with suspicion by most US individual investors, with only 2% of them holding Bitcoin and another 75% of them describing bitcoin as “very risky.”
Conducted by Gallup and Wells Fargo, the poll surveyed nearly 2,000 American investors with holdings exceeding $10,000.
In Q-2 Wells Fargo/Gallup Investor and Retirement Optimism Index survey presented a snapshot of US adults with $10,000 or more invested in stocks, bonds or mutual funds, either within or outside a retirement savings account. Its results indicated that despite the excitement over the popularity of Bitcoin trading, especially at a time when institutional investment is expected to make an entrance, the asset class remains a niche investment area, unknown or untrusted by the majority of market participants.
According to the poll, more than 70% of respondents have no interest in buying Bitcoin. Just over 25% polled indicated a general interest in the asset, but they have no plan to invest in it anytime soon. Most surprisingly, only 2% of the respondents have Bitcoin holdings.
A further statistical and demographic breakdown of results shows a higher level of Bitcoin awareness and acceptance among younger respondents and men. The data shows that relatively younger investors with less than $100,000 in holdings are more likely to be familiar with Bitcoin and cryptocurrencies. Women and seniors were overwhelmingly less likely to express an interest in Bitcoin investment or an awareness of the asset category.
A Key takeaway from the data is that Bitcoin remains a topic of interest for young and male investors, who are generally not as financially well-heeled as their older counterparts.
Of the 1,921 survey respondents, only 3% of men and 1% of women said they owned Bitcoin, with both categories aged 18 to 49 and 50 or older respectively.
According to survey results, less than 0.5% of respondents described Bitcoin as a non-risky investment; 75% of them said they considered it to be “very risky,” a figure that tracks closely to the 70% who do not plan to invest in the asset; 2% described it as “not too risky,” which correlates with the 2% who currently have Bitcoin investment holdings; and 23% described it as “somewhat risky,” again closely tracking the 26% who showed a general interest in the asset without any specific purchase timetable in mind.
“US investors prefer to play it safe with their investments, opting for security over growth,” the pollsters remarked.
A Key reason for this lack of traction with Bitcoin is due to the information deficit about cryptocurrencies. This is why 29% of respondents reported to “know something about digital currencies.”
This poll shows that despite an overwhelming majority of investors having heard of Bitcoin (96%), this has not impacted positively on their willingness to invest in it.
“Most investors are on the sidelines, knowing little to nothing about Bitcoin. Few are already invested in it, and even fewer plan to jump in soon,” the pollsters concluded.
Currently, Bitcoin is trading at 7,389.39, -152.95 , or -2.0279% as of 1:58a BST, the market is open