The cryptocurrency industry has been booming, and despite the market downturn in 2022, interest in the industry has not abated.
A recent Pewresearch study noted a staggering 88% of US adults have heard of cryptocurrencies. However, 75% of these individuals have absolutely no confidence in the safety and reliability of digital currency assets such as Bitcoin and Ethereum.
The growing concerns about the safety of cryptocurrencies can be attributed to the collapse of so many crypto companies over the past few months. Start with the company Terra belong to Do Kwon until the exchange Billionaire’s FTX Sam Bankman Friedthe demise of these companies rocked the crypto industry.
The increased volatility of Bitcoin and the overall market may also have caused this drop in confidence. As shown in the chart below, the volatility of crypto assets is quite high throughout the year. Currently, Bitcoin volatility is 0.62.
The survey conducted by Pewresearch indicates that “2-4% of those surveyed have a strong or very confident view of the cryptocurrency market.” Additionally, another poll conducted by JPMorgan Chase & Co, published in February 2023, states that 14% of institutional traders plan to trade digital currencies in the next 5 years, compared to with 72% saying they will not do so by 2023. The data is not positive for the industry as these participants will remain reluctant to invest.
Do men still prefer crypto to women?
Additionally, women are a bit more hesitant to buy, sell, or trade assets like Bitcoin and Ethereum. This is in contrast to 71% of men and 80% of women who have heard of crypto saying they do not trust it. Men between the ages of 18 and 50 are more inclined to invest in cryptocurrencies than men over 50.
Furthermore, most of the crypto investors are from the Asian community. Only 14% of white adults are interested in crypto, much lower than 21% of blacks or Hispanics. While cryptocurrencies have certainly gone mainstream, it is important for industry leaders to rekindle confidence in the crypto ecosystem, after a tumultuous 2022. and a lot of negative news.
See also: Bitcoin galloping 30,500 USD, Fear & Greed index reaches highest level
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