GrayScale - Bitcoin Investor Study

I was going through the recent Bitcoin Investor Study by Grayscale and found out some of the interesting things. Like 26% of US investors own Bitcoin, which is actually a good number given the fact that these investors value Bitcoin as an asset. I know this is still a very less number, but again if we go through the study we will see that it has increased from the year 2020.

PC: Pixabay.com

The study is mainly related to topics like familiarity with and interest in Bitcoin, those who have actually invested in Bitcoin, why invest in Bitcoin, why not invest in Bitcoin, what role does Bitcoin play in one's portfolio and the impact of Bitcoin ETF. Though till now we were seeing a lot of big companies were buying Bitcoins or the retail investors were not that much interested in Bitcoin to keep in their portfolio. But in 2021, we have seen that mainstream adoption has increased where more and more investors are keeping Bitcoin in their portfolio.

If I talk about the last 12 months, more than half of those who have invested started in the last 12 months itself and thus the price is just the reflection of it. I think when more and more people will start investing in Bitcoin, we will see the price of Bitcoin to parabolic. Also, most of the investors who have invested are HODLing it which means they know that Bitcoin is the future.

Also, a major trend is that people prefer buying Bitcoin with a digital wallet or money app and thus when PayPal started supporting Bitcoin last year the investors have increased subsequently. Now think of a scenario where if almost all the digital wallet supports accepting payment or you can buy Bitcoin from them. Then everyone will be trying to HODL a piece of Bitcoin and thus people are saying today that this is just the beginning.

Out of those people, 75% of them considered Bitcoin as an investment vs the currency. I guess this is absolutely correct because Bitcoin is just like Digital Gold where the supply is limited and once that supply is achieved, the price of a Satoshi will become quite high. Bitcoin investors accumulate it for long-term returns and do not sell it even if they are getting more than 200% returns.

The Bitcoin ETF has also helped Bitcoin gain popularity because most of the investors who have not invested yet will more likely to invest in Bitcoin if there is an ETF. The main reason people invest in Bitcoin is its track record and we know the track record will be like this in the future too. Though most of them are also considered a risk in crypto investment mainly the preception are positive. I am happy that GrayScale has done this study and every investor should read this and invest in the future.

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