Bitcoin continues to be the favorite cryptocurrency of US investors, noted digital asset investment firm Grayscale, in its third annual study on BTC investing.
The industry of cryptocurrencies is constantly changing and growing. The alternative that was born with Bitcoin in 2009, today has become a multi-million dollar market that adds up to 2.5 billion dollars, encompassing some 11,500 different cryptocurrencies and tokens. However, despite the fact that new crypto assets are added to the industry every day, Bitcoin, the most important cryptocurrency in the world and the largest by capitalization, continues to be the favorite of investors. This was reviewed by the investment firm in digital assets Grayscale, in its third annual study on investments in Bitcoin, entitled “Bitcoin Investor Study 2021”.
Grayscale applied its study in the United States through the firm 8 Acre Perspective, surveying a total of 1,000 investors with capital equal to or greater than 10,000 dollars. The investors were between the ages of 25 and 64. Grayscale’s objective with this study is to deepen its research on investor preferences regarding cryptocurrencies. The firm found that the approval and launch of new Bitcoin investment products, such as Futures ETFs, which were greenlit by the SEC in October, are playing a major role in the continued adoption of cryptocurrency.
“An ETF that offers exposure to the price of Bitcoin is seen by many as the lynchpin of a strategy for traditional financial institutions… And is seen as a potential catalyst for widespread adoption.”
Likewise, the firm pointed out that Bitcoin is not only being popular among young investors, but that is crossing generations to reach senior investors, including retirees. According to Grayscale, many investors are getting exposed to Bitcoin because they see the cryptocurrency as a potential hedge against inflation. In the last year, Bitcoin has appreciated 163%despite the recent drop in its price last weekend.
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Bitcoin, worldwide acceptance
In its recent study on investing in Bitcoin, Grayscale detailed that more than half of those surveyed are investing in Bitcoin through a cryptocurrency trading app, instead of an exchange. Likewise, the firm said that, compared to the results of its previous study, today there is great demand and interest in Bitcoin, which is why 55% of those surveyed became investors in the cryptocurrency this year. Only 26% of those surveyed by the firm already owned BTC investments.
Source: Grayscale
The revaluation that Bitcoin has had in recent years, which brings the cryptocurrency closer to 100,000 dollars per unit than to $0, is also encouraging the entry of more investors.
On the other hand, institutional investors of the scale of MicroStrategy and Square, who have adopted Bitcoin as a strategy to protect their value from inflation, are also driving confidence and adoption of BTC globally. It can be said that these companies have inspired many others to discover the potential that BTC offers as an investment asset and long-term store of value. El Salvador, the first country in the world to make Bitcoin its legal tender, is also serving as a major catalyst to drive crypto adoption.
overcoming obstacles
Many of the headlines that we read today are placing special emphasis on the drop in value that Bitcoin suffered last weekend, when its price fell by 14% in the market. However, looking at the performance of the cryptocurrency from a broader perspective, although BTC is trading below the $51,000 per unit at the time of this edition, it still continues to return profits for those who invested at the beginning of the year.
In the case of MicroStrategy, which has been adding BTC to its balance steadily since August 2020, the average purchase price of each BTC it currently holds is $29,534; so the company maintains a profit of $21,000 for each BTC purchased.
Source: CoinGecko
On the other hand, although many have predicted the death of Bitcoin dozens of times in recent years, the reality is that the cryptocurrency continues to strengthen and consolidate itself as the digital gold of the 21st century.
It was even said that with the ban imposed by the Chinese government on miners and the trading of Bitcoin and other cryptoactives, the cryptocurrency could lose its value. Sure enough, Bitcoin fell by around 47% by then. However, in less than two months it fully recovered its value and reached a new all-time high of almost $70,000 per unit.
According to the Grayscale report, more than 90% of US investors surveyed are in the green with their Bitcoin investments.
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