Bitcoin Grayscale Chart: Stock Market in 2021> Payments

Grayscale has conducted a survey of traders in the community for the third year in a row to examine the attitudes and feelings of investors in Bitcoin. While there is a lot of new cryptocurrency this year, Bitcoin is still in talks with investors, investment advisers, financial companies, media, vendors, regulators, and investors to create rules. Therefore, Gray conducted the third study to measure how people's perceptions of Bitcoin have changed since 2019.

The main points of this sentence:

Bitcoin's popularity continues

Bitcoin based on "value adjustment" is more popular than "payment currency".

Most women now think of Bitcoin.

Most Bitcoin traders have already benefited from it.

Most traders who have Bitcoin also have at least one other cryptocurrency.

Motivations and risks of investors

Many important questions emerged from this year's study. Most importantly of these is that in an era of market capitalization speculation on Bitcoin as an asset repository has increased, and those interested in trading view Bitcoin as a long-term investment as the payments increase. . It is gaining traction with older investors, including some retirees who want to see the market for Bitcoin investment products in data form. Many people often see Bitcoin as a place where ETFs are an integral part of financial institutions, and think it will be an incentive to use Bitcoin more. quantum.

To research

8 Acre Perspective was surveyed online of 1,000 American entrepreneurs from August 12, 2021 to August 20, 2021. All respondents were between 25 and 64 years of age and had an important role to play or participate in family financial decisions. All those interviewed have made investments with homestead ownership of at least $ 10,000 (excluding vacation or housing plans) and family income of at least 10,000. $ 50,000.

the main difference

As banks in many countries are working hard to solve the problem of using Bitcoin, now is the time to embrace Bitcoin. The percentage of Americans owning bitcoin has increased from 23% in 2020 to 26% in 2021. More than half (59%) of this group have chosen to invest in the market for trading cryptocurrencies like eToro or Coinbase. , traded last year.

The demand for Bitcoin has increased dramatically. More than half of investors (55%) started investing in Bitcoin last year. Investors were eager to buy, and expectations emerged in the November 2021 Bitcoin high of close to $ 100,000 instead of zero. Most of these traders still "hold" them, and around 66% of those who bought Bitcoin over a year ago still have Bitcoin today. Of the traders who traded, 91% benefited from selling at least Bitcoin.

Despite growing markets and terms of use such as financial controllers (DeFi) and non-fungible tokens (NFT), Bitcoin still accounts for 46% of the total crypto market value.

More than a quarter (77%) of U.S. investors said they would be able to invest more in Bitcoin if they had a Bitcoin ETF. The concept of Bitcoin ETF was introduced with the first Bitcoin Futures ETF trading published by ProShares on the New York Stock Exchange in October 2021. Although the entire Bitcoin community (beyond the reach of respondents) loves Bitcoin ETFs which Take in In the near future, future-based bitcoin ETFs are a good start for further adoption.

To analyse

Bitcoin's popularity continues

As prices continue to rise, it becomes more and more difficult for traders to ignore Bitcoin. Bitcoin investors grew from more than half (55%) in 2020 and from less than a third (36%) in 2019 to 59% in 2021, affecting investor interest in Bitcoin.

Although growth has slowed slightly (comparing growth from 2019 to 2020 and from 2020 to 2021), some are still “very risky” or “just a sample”. . Tech entrepreneur Peter Thiel said in October 2021 that he had "not invested" in Bitcoin.

As the perceptions of traders change, the longevity of Bitcoin will increase. Almost a third (29%) of traders who changed their minds about Bitcoin last year said they had higher hopes for Bitcoin in 2021, while 15% said they were up again. happy.

Meanwhile, the channels through which traders can buy Bitcoin are also changing. In 2020, more than three quarters of traders will prefer to buy directly from Bitcoin exchanges. By 2021, almost two-thirds (59%) of traders will say they want to buy Bitcoin through a cryptocurrency trading app (like eToro or Coinbase), and only one-third (35%) of investors that they will. Bitcoin directly from the exchange.

It should also be noted that investors have increasingly used financial technology to maximize cryptocurrency investment. For example, 30% of traders use digital wallets or payment apps (such as Venmo or CashApp) to buy Bitcoin. The growth of traders buying Bitcoin through the use of traditional financial instruments is undoubtedly the main driving force behind PayPal. PayPal is one of the largest financial companies in the world and announced its support for Bitcoin last year.

Bitcoin as a market for valuable assets VS Bitcoin as a means of payment

According to the investigator, the two main uses of Bitcoin remain "asset repair" and "means of payment".

While financial companies still struggle to respond to Bitcoin's role in the global market, investors clearly recognize Bitcoin as an investment that can save money in the long run rather than the benefits of payment. This is a significant change from 2020, when Bitcoin is therefore more popular with investors than any other data platform.

By 2021, the number of investors treating Bitcoin as a "payment currency" as an "asset" has tripled. More than a third of them (37%) believe that Bitcoin is a short-term investment of less than a year and that they can 'make money fast'. Over half (55%) of investors view Bitcoin as a long-term investment.

One in five investors surveyed who viewed Bitcoin as a "currency of payment" saw Bitcoin as a method of payment for products and services. Another 14% will use Bitcoin for the conversion to peer.

Bitcoin's current use of data exchange has also been criticized by trader Mark Cuban, whose NBA team Dallas Mavericks accepts Bitcoin as a payment method. However, Cubans believe that fewer fans are paying to use Bitcoin compared to the Dogecoin coin ("DOGE").

Another sign that traders view Bitcoin more as an 'asset' is that many options don't sell it. Last year, more than half (55%) of investors surveyed invested in Bitcoin for the first time, and the majority of this group still owns Bitcoin, supporting Bitcoin as a long-term investment.

Most women now think of Bitcoin.

The idea that Bitcoin has been a favorite for thousands of years (since the 80s and after the 90s) is no longer true. In fact, the biggest increase in 2021 in investors expressing interest in Bitcoin will be older investors. In 2021, the proportion of investors aged 55 to 64 (who will certainly or could consider Bitcoin investment products) will increase by 16% year on year.

Compared to the 2020 level, the percentage of women entrepreneurs considering Bitcoin investment products in 2021 will increase by 6%, but the percentage of men doing business in this category remains stable.

Higher education is not a predictable factor, as unskilled entrepreneurs will increase by 15% in 2021 compared to 2020.

Most Bitcoin traders have already benefited from it.

Now, most Bitcoin traders choose to 'Advertise', especially when the price of bitcoin is still rising, but some options are cash. When they do, they are usually already rewarded. Six in ten investors surveyed have sold at least one of their digital assets, accounting for 91% of revenue.

Impact of Bitcoin ETFs

ETFs will have a major impact on Bitcoin investments, and 77% of respondents said they would be more likely to invest in Bitcoin if they had an ETF.

The announcement of ProShares' Bitcoin Strategic ETF (BITO) on the New York Stock Exchange in October 2021 is a good sign and brings the price of Bitcoin to an all-time high. However, the entire crypto community is not optimistic about future ETFs and instead focuses on space-based Bitcoin ETFs which could offer more cashback.

Bloomberg analysts Eric Balchunas and James Seyffart have argued that Bitcoin Futures ETFs are not the best solution for retailers or long-term investors looking for an impact on Bitcoin.

Bitcoin and other cryptocurrencies

Bitcoin is still the most popular cryptocurrency, but knowledge of other crypto assets is high.

The cryptocurrency market has come a long way with new tokens, largely due to the rise of decentralized finance (DeFi). However, Bitcoin is still the most popular, with 99% of traders saying they know Bitcoin and 68% of traders saying they "know".

However, that doesn't mean that investors haven't heard of other cryptocurrencies. In fact, we are well aware of the popularity of Dogecoin and other cryptocurrencies, which was a joke at first, but has grown in popularity.

More than half of merchants are familiar with Dogecoin and Ethereum.

Almost three-quarters (74%) of traders have heard of Dogecoin, more than Ethereum (56%).

Over a third of investors are familiar with Litecoin, Tether, and Cardano.

Litecoin, Cardano, and Tether are also popular with Favorite Traders with over 25% experience.

Most traders who have Bitcoin also have at least one other cryptocurrency.

Most traders with Bitcoin (87%) also hold one or more altcoins. The most popular altcoins are Ethereum and Dogecoin, the main platform coins for DeFi and NFT projects.

Encouragement and anticipation of investors

Bitcoin's 'Data Gain' Still the Most Important Factor in Encouraging Investment

When it comes to interest in Bitcoin, investors are more concerned with Bitcoin's “data gain”, which is also based on the concept of Bitcoin as a long-term investment. However, the stock market is valued at a slightly lower rate of 42% in 2021, 46% in 2020 and 54% in 2019.

Strong demand for learning Bitcoin

Education is also important. 42% of traders want to know more about Bitcoin.

The percentage of investors eager to learn has declined slightly from 47% in 2020 and 49% in 2019, but this reflects the growing awareness of people with Bitcoin.

The demand for Bitcoin training is so high that vendors, consultants, and other crypto companies should consider how to meet the needs of investors to better understand this new legacy. As research results show, increasing your knowledge and understanding of Bitcoin is closely related to your ability to make investment decisions.

Understanding the risks of investing in Bitcoin

In terms of investing in Bitcoin, the risk remains incredible. More than half (58%) of the investors surveyed consider the risk to be in their best interest. In particular, older traders want to understand the risks of investing in Bitcoin, and more than two-thirds (69%) of investors aged 55 to 64 say they do. for

In comparison, less than half (46%) of young entrepreneurs aged 25 to 34 are at risk of becoming specialists. However, 21% of market researchers last year cited risk as the main reason they didn't decide to invest in Bitcoin.

Concerns about the dangers of Bitcoin

Traders embrace Bitcoin and are less concerned about risk, more cyberattacks, volatility, and control than last year.

Among investors dissatisfied with Bitcoin, 58% cited the inability of digital assets for cyber attacks as the main reason. Over half (53%) of investors said their dissatisfaction was due to Bitcoin's volatility, while 51% of investors said their indifference to Bitcoin was fair.

Why do traders buy Bitcoin?

If investors could choose to buy at a super low price, everyone would benefit from the market for Bitcoin investment products. As we approach a quarter (70%) of the 2021 period, this will encourage investors to buy Bitcoin, up from 65% in 2020 and over 59% in 2019.

What pushes traders to buy Bitcoin in two-thirds by 2021 is that it can be traded on the stock exchange and is very liquid. In recent years, this difference has also become significant.

points needed

The value of Bitcoin and traders is poised to hit an all-time high as more people and organizations engage in digital benefits.

2021 will be an important year for the adoption and adoption of Bitcoin. El Salvador became the first country in the world to use Bitcoin as a lucrative currency in September 2021, a key “catalyst”. At the same time, global inflation has risen sharply with no visible impact, and Bitcoin is in the global spotlight as a “value proposition”.

Billionaire investors Paul Tudor Jones, Ray Dalio and Peter Thiel have all presented Bitcoin as a hedging asset in the current rise in prices, and at least as “digital gold” Bitcoin versus precious metals.

Since its inception 12 years ago, Bitcoin has faced many insurmountable obstacles, but it remains high. While some of the company's top CEOs, such as JPMorgan Chase CEO Jamie Dimon, continue to be wary of bitcoin and digital currencies, some Wall Street investors have increasingly turned to digital products.

The most important thing that has captured the interest of investors is the announcement of the Bitcoin Futures ETF. Spot Bitcoin ETF approval requests are pending, including applications for the Grayscale Bitcoin Trust Fund (code: GBTC).