Investors in the US may not be as interested in buying Bitcoin. After hitting an all time high of $20,000 in December last year, Bitcoin has only made users cry. Prices crashed and reached the hovered over $6,000 for some time in May, since when it has recovered in miniscule ways. In early May, Wells Fargo and Gallup did a survey of investors with a portfolio over $10,000. They had a few surprising numbers for the readers.
For once, it proved that a large number of people are still unaware of what Bitcoin, or any other cryptocurrency for that matter, truly is. A whopping 67 percent of the survey respondents said that they have only heard about the currency but know nothing much about it. Another 29 percent said that they know at least something about digital coins. However, 5 percent of the respondents said that they knew nothing about digital currencies.
This goes on to show that people’ awareness related to these currencies is so limited that their participation in the crypto sector wouldn’t happen anytime soon. The report also shows that only 2 percent of the US citizens are currently invested in digital currencies. Most people who remain invested are very wealthy investors while youngsters and men are two main demographics who are interested in these coins and are sitting on the fence regarding their investment decisions.
However, if we look at the positive side of the matter, we will find that Bitcoin is not as much of a bubble as some people claim. The recent slump in prices could have affected a far smaller number of people than what most so-called pundits claim. Therefore, even if the currency seems to be in an asset bubble, it wouldn’t be as large as the housing bubble or even the dot com bubble, the former of which displaced the stability of the economy completely.
However, does this mean that all the noise surrounding Bitcoin is merely hype? Does this mean that the entire cryptocurrency sector would be affected very badly? Are we seeing the dot com bubble-like times again?
It is likely that most cryptocurrencies available on the market today, over 1600 of which are listed on CoinMarketCap alone, will not make it to the next decade. However, established, and time-tested currencies like Bitcoin, Ethereum etc. have a chance of not just surviving the storm but also coming out with excellence. Bitcoin, for instance, has the largest acceptance level as far as crypto exchange support is concerned. In fact, people who know about cryptocurrencies, know first about Bitcoin only.
Over the years, as Bitcoin continues to provide a safer, more stable method of storing value and making payments, it could also get a bigger market cap. Currently, the market capitalization of the currency is over $100 billion, and it is expected to increase over time. Therefore, it will be wise to buy while the prices are still low and HODL for the long run. Just remember, don’t invest more than what you can afford to lose.