Survey: 20% of Americans Think Bitcoin Can Be Purchased for Under $100
Bitcoin, and the cryptocurrency market in general, is experiencing an unprecedented surge in adoption. Retail investors continue to flood in, but the real takeaway is the entry of large amounts of institutional funds. The market appears to be at the “foothills” of institutional adoption, as described by Ruffer Investments.
And why wouldn’t one think that? Goldman Sachs is reportedly looking into becoming a crypto custodian, after the OCC approved stablecoins for payments. JPMorgan Chase and Citibank are seemingly doing the same.
Institutions that once ridiculed Bitcoin now support it — just one reason as to why the cryptocurrency is experiencing an unusual bull run. BTC typically has a few corrections in every bull run and these are healthy. However, there is an undeniable optimism not seen before.
This same conviction appears to be taking shape in the minds of the public as well, as indicated by a recent survey by cryptocurrency platform, Xcoins.
Bitcoin’s Price Remains Underestimated by the Public
The conclusions drawn from the 2020 survey are well in line with the movement of prices in the market right now. Xcoins surveyed US citizens with the intention of discovering how well versed they were with the cryptocurrency market. The results suggest that Bitcoin might have the potential to grow, both in terms of price and public awareness.
Unsurprisingly, the overall picture painted by the survey is that the vast majority of US citizens know little about crypto. Among major assets, Bitcoin was by far the most well known, with 78.38% aware of the term. Bitcoin Cash came next (22.87%), followed by Ethereum (13.23%), Litecoin (9.94%), and none (18.5%).
Most professional and seasoned investors would advise those new to the asset class to stick to BTC and ETH. The growing legitimacy of crypto could spur the many investors who know nothing about crypto to join the market. The figures above suggest that this group is large — meaning there’s plenty more retail funds left to join the market.
When asked what they thought 1 BTC was worth, the answers varied considerably. The largest group believed that it was worth $1 — 100, while roughly 17% believed it was between $1000–15000. Only 0.30% believed it was more than $50,000 — which is well within Bitcoin’s reach in 2021.
This is far from the six-figure prices put forward by the likes of JPMorgan Chase and Citibank. It appears that in terms of both price and general value, the misconceptions come from misunderstanding the asset class.
The level of understanding of crypto also skews heavily in favor of younger, male investors. This is in line with another survey, which showed that most millennials saw Bitcoin as digital gold. Among all states, Texas was the most crypto-literate, with Houstonians tagging BTC with a price of $10,636.
Survey Findings Confirm Developing Trends
What does this tell us about the near to medium-term future of the market? Most significantly, it provides proof that there is a large swathe of investors who could exponentially boost the market. The key to industry growth will be tapping into these retail investors and convincing them of crypto’s legitimacy.
In all honesty, the crypto market moves at such a breakneck pace that trendsetting is almost a weekly occurrence. But even in this fast-paced chaos, there are some clear outlines of a landscape that is forming.
The most obvious of these, as mentioned earlier, is the arrival of institutional investors. This was reported far back in September 2020, when an Evertas report said that 90% of institutions would enter crypto. Judging from the developments at Guggenheim and Grayscale, this is very likely.
Another trend is the switch towards digital services and processes. The world is becoming increasingly tech-savvy, and younger investors prefer this method. 40% of Americans will switch to digital banking post-pandemic, and developing countries much prefer this already.
The end result is that, despite the appeal to younger investors, the nature of tech developments will revolutionize the operation of banking services. Just as the elderly have come around to using the Internet, so too will it be with Bitcoin.
With only 101 million users worldwide, the crypto market has reached but a fraction of the world’s population. There is much steam left in the market, and 2021 will prove to be a decisive year for the market.
The financial revolution is still in the early stages. The task is to make crypto accessible and this is already happening, as proven by regular tech developments. In terms of real-world applications and as independent assets, there is a lot to look forward to, so growth potential remains.
You can never be sure of prices following your analyses — this is true for equity and especially true for crypto. In the long-term, with proper research of the fundamentals, one can be confident about an investment. But in the short to medium-term frame, that becomes much harder.
The responses from the survey seemed to indicate that the general public feels this way as well. Most investors, especially those relatively older, shy away from the novel and uncertain nature of crypto. To bring long-term stable price levels, the market will have to simplify its presentation and attract these users.
What is your opinion of the general trends in the cryptocurrency market? Do you believe that greater adoption will arrive across age groups in the medium-term? Let us know what you think in the comments below.