Digital assets management platform and crypto derivatives exchange Bakkt said that 48% of over 2,000 US consumers who responded to its survey invested in cryptocurrencies in the first half 0f 2021.
“Nearly half (48%) of U.S. consumers reported investing money in cryptocurrency during the first half of the year.”
According to Bakkt, the survey focused on their motivations, habits, and sentiments toward cryptocurrency adoption. The results also provided further information about how the consumers prefer to integrate cryptocurrencies in their daily activities and the decisions that influence their crypto habits.
Additionally, the survey found out that 32% of respondents with no crypto investments are interested in buying cryptocurrencies in the next six months. The biggest challenge to the latter group, as the survey points out, is education around technology, since 24% have admitted to not knowing where to begin.
“The findings also reveal the greatest hurdles facing consumers when buying crypto, along with other habits and views that impact behavior.”
Adoption Is Higher Among the Younger Generation
Respondents aged between 18 and 29 and 30 and 44 constitute 37% of those who are “somewhat” and “very interested” in buying crypto, within the group of people not yet invested in crypto, the study says.
However, only 25% and 19% of people between 45-60 and above 60 respectively, have expressed interest and thus indicating less confidence and knowledge around crypto investments.
Consequently, cryptocurrency has become a key factor that is currently influencing consumer trends and habits and in the process creating a dynamic economy. 58% of buyers see crypto as a long-term investment while 48% are planning to sell and make a short-term profit.
A further 24% said they recognize the purchasing power of crypto and are planning to use it for online purchases while 12% will use crypto for in-person purchases.
“Just as peer to peer has revolutionized cash, we see recognition that sending crypto to peers is possible and 11% of people were interested in doing so.”
For the entire group of respondents, the survey found that 28% of their most crypto-appealing attribute was the high long-term return on investment. Other attributes include negligible or no fees, ease of access, FOMO, and little centralized control in the marketplace.
Crypto Adoptions Will Benefit From More Education and Demystification
40% of consumers revealed their lack of information on the fungibility of cryptocurrencies which would allow them to buy parts of an asset like bitcoin.
“Financial literacy and consumer understanding are crucial to uniting the cryptocurrency and digital assets ecosystem in order for consumers to take advantage of the new ways to acquire and transact.”
Bakkt CEO Gavin Michael added that for Gen Z and Millennials who constitute the biggest group of adopters, their primary concerns are market volatility and little understanding.
“Digital assets are driving a new increasingly dynamic economy and Bakkt is creating tremendous value for consumers by offering an extremely accessible and low-cost entry into bitcoin investment.”
For the US market, Bakkt concludes that cryptocurrencies are increasingly becoming more mainstream and the existing hurdles now present an opportunity for educators in the industry.