As the price of Bitcoin has rebounded, so has investor interest in the cryptocurrency asset class.
Recent surveys have confirmed that while not many common Joes and Jills own cryptocurrencies today, there continues to be rising demand, boding rather well for the industry’s long-term prospects.
Growing Bitcoin Demand
To many of crypto’s cynics, Bitcoin is an unwanted asset, loved by no one and poised to enter a “death spiral”. According to a recent study conducted by Grayscale and Q8 Research, during which the two firms surveyed 1,100 Americans that are between 25 and 64, this is far from the case.
The survey found that over 36% of those in the respondents’ demographic are interested in purchasing Bitcoin.
Per Grayscale, the figure can be extrapolated to suggest that 21 million investors — the maximum number of BTC that will ever be in circulation — are interested in the cryptocurrency. With the U.S. only representing a small portion of the world’s population, this statistic could be seen as rather bullish.
Grayscale and Q8 then elaborated on why there is demand for BTC. The two firms laid out three primary themes. Firstly, “Bitcoin-curious” investors found that knowing that they can start small in cryptocurrency — build up small portfolios by purchasing fractions of a coin — is drawing them in.
Secondly, the group noted that they see Bitcoin as an attractive asymmetric bet, meaning a financial play with notable growth potential. And lastly, these investors confirmed the idea that Bitcoin’s scarcity, which will soon be accentuated during the next halving, is what draws many investors in.
To follow up, the two firms then discovered why investors are hesitant to foray into Bitcoin. 75% of all investors surveyed claimed that they are wary of crime in the cryptocurrency ecosystem.
With scams, exchange hacks, and odd run-ins with regulators being a common sight in the industry — which has only recently been accentuated from comments from Donald Trump and other individuals — it is clear to see why most are afraid of crypto-crime.
Who’re BTC’s Buyers?
The survey found that despite cryptocurrencies being reported to be cool with millennials and those that are younger, the average Bitcoin-curious investor is a 42-year-old male or female that is a parent and makes less than $100,000 this year.
What’s interesting is that Grayscale and Q8 also found that those wanting to purchase the cryptocurrency claimed to be more experienced than average investors, implying that Bitcoin is starting to become seen to be a logical investment decision.
Indeed, since bottoming in mid-December, Bitcoin and cryptocurrencies have outperformed any traditional asset class, leaving most stocks, even hot blue-chip ones, in the dust.
Delphi Digital, a cryptocurrency-friendly markets research firm, found last year that allocating 3% of one’s capital to BTC actually gives the average investor’s portfolio a higher Sharpe Ratio.
Also, the cryptocurrency is increasingly being seen as a safe-haven play. So in a world where there are boiling geopolitical tensions, strains on the macroeconomy, and a growing number of authoritarian states, Bitcoin may just make sense.
Getting Bitcoin is Getting Easier
The uptick in potential demand for Bitcoin has come amid a push to make accessing the cryptocurrency market easier. Lolli, a Bitcoin earning service startup, is at the tip of this spear.
Recently, the company, which gives consumers a chance to earn BTC for shopping online by simply installing a plugin, recently partnered with Albertsons’ subsidiary, Safeway.
The grocery chain, which is popular in the United States and Canada, and Lolli will be offering up to a 3.5% BTC rebate for those that shop for Safeway goods online.