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People from all over the world have been investing in Bitcoin as of late. A recent survey by LendEdu polled 564 Americans on the subject. While it may be a no-brainer to most cryptocurrency users to invest in Bitcoin, the average person on the street needs a lot more convincing. The results of this survey are pretty interesting, to say the least.
AMERICANS AND BITCOIN INVESTMENTS
It is always interesting to learn what makes people invest in Bitcoin or how much money they are willing to spend on such a venture. A new study by LendEDU shows Americans have multiple opinions on Bitcoin, even though their overall sentiment appears to be on the bullish end of the spectrum. While the rest of the world may not necessarily be on board, there is positive sentiment in the Bitcoin world right now.
The 564 American investors participating in this survey have all contributed a solid amount of money when it comes to Bitcoin. With an average portfolio worth of US$2,930.85, it is evident there are plenty of people who are willing to spend serious money on what may very well be the currency of the future. That’s mainly driven by speculation, but not everyone is looking for short-term gains. In fact, only 16% of respondents planned to hold their investment for less than a year prior to cashing out.
It is somewhat surprising to note that around 39% of respondents planned to hold their Bitcoin investment for up to three years. That time frame is a lot longer than what one would expect, but it could still be considered a short-term plan. Over 21% of respondents said they’ll hold Bitcoin for over seven years, though. One should only invest money he or she can afford to lose, especially when it comes to long-term investment. In the case of Bitcoin, the price may look very different seven years from now.
What is perhaps the study’s most surprising statistic is that 67% of these investors have not sold any of their positions since investing. That is a very solid strategy, even though there’s something to be said for day trading and the profits that can generate. Opinions are somewhat divided on this front, especially given the risk that day trading entails. The average price at which respondents said they’d be willing to cash out was US$196,195 per Bitcoin. If and when that price will ever materialize remains a big question for the time being.
Taxation of Bitcoin is also a very real concern for US-based investors. According to the survey, just 64% of holders plan to report their Bitcoin transactions to the IRS. Given the popularity of Chainalysis among IRS officials, it is evident they will find a way to monitor Bitcoin users’ activity regardless. This is a pretty interesting situation well worth keeping an eye on over the coming years.
Last but not least, nearly half of investors are worried about the security of their investments. It is evident there is a growing need for more secure Bitcoin wallet options. Keeping funds in an exchange is as insecure as it gets, since users do not control their money whatsoever. A hardware wallet is always your best bet in this regard, even though they can be pretty difficult to obtain at times.