A recent survey conducted on more than 1,000 Americans on the issue of cryptocurrencies has shown that bitcoins are majorly owned by large city based young men who are relatively well-off.
The survey also found knowledge of bitcoin and cryptocurrencies exist among most people and are also able to explain their meaning to others. But those Millennial men who reside in urban areas and who earn more than $75,000 a year are those who are the real fans of bitcoin.
Clovr which is a firm that is focused on promotions of the adoption of blockchain technologies in the mainstream conducted the survey. Blockchain technology is the underlying technology for cryptocurrencies like bitcoins and act as digital ledgers which record cryptocurrency transactions
The fact that young men are the biggest bitcoin evangelists is no surprise at all.
And yet, true cryptocurrency evangelists could be disappointed by the results of the survey. This is because in addition to revealing that there is limited reach of cryptocurrencies, the survey also found that the primary reason that people invest in virtual currencies is because they hope someday it would give a huge return to them and not because they consider virtual currencies as the future of money which will replace traditional money and currencies. w\this means that bitcoin is seen by investors in a similar manner they viewed the internet stocks in the late 1990s or the stocks of marijuana companies today – both of which are highly speculative investments.
Another reason that the survey unearthed behind investments being made in bitcoin is the tendency among the respondents to be a part of a hot fad by investing in instruments where others who are close to the investors have also invested.
And this can result in losses for the investors in bitcoin or the like. Often, retain investors find that they had been late in deciding to catch on to a trend in investing. For example, such investors continue to invest in cryptocurrencies when the so-called smart money such as the large big mutual funds companies and hedge funds are divesting their portfolio of cryptocurrencies.
“A lot of people involved in speculative investments — going for long shots — don’t fall into high income brackets,” Cribari said while talking about the multiple studies conducted on the manner in which casinos, lotteries and other forms of gambling are often considered taxes on the poor.
It would not be soon that cryptocurrencies would start to be considered as alternatives for traditional money and the government-backed paper currencies by the general population. According to experts, that transformation for bitcoin and similar cryptocurrencies would only take place when they are made available to people in their daily lives through more usable applications.
“It’s hard for people to understand things like private keys and transfers,” said Cribari. “People need to be able to use cryptocurrencies more for things like buying their lunch.”
(Adapted from Money.CNN.com)