In a recent survey by NORC at the University of Chicago, a nonpartisan research organization, it was discovered that 62 percent of Americans surveyed do not invest in cryptocurrency[efn_note]Cryptocurrency is often described as a digital or virtual currency that is secured by cryptography which makes it nearly impossible to counterfeit or double-spend (Investopedia). But beyond currency or money, a cryptocurrency may also be an asset. When a cryptocurrency is bought as an asset, the buyer or investor believes that the value of that asset will increase in the future, just as stock market investors buy securities when they believe the company will grow and share prices will increase (NASDAQ). Because many cryptocurrencies are without a central authority, they are decentralized networks based on blockchain technology. [/efn_note] because they do not understand the market.
According to the survey, a lack of investable (disposable) cash is not the major reason the Americans are not investing in cryptocurrencies but a lack of understanding of the market. Interestingly, having no money to buy cryptocurrencies, which was 33% of the problem, was not the next biggest hurdle to cryptocurrency investment.
Concerns over security, no extra cash, lack of know-how, and price volatility are holding potential crypto asset buyers or investors back
Coming after the lack of understanding or the crypto market is concerns around security which was 35%. Then coming closely after the lack of disposable cash (33%) is not knowing how to invest (31 percent).
Interestingly, price volatility—which is commonly considered by many traditional or stock investors to be the Achilles heel of cryptocurrencies—in a recent survey by NORC at the University of Chicago, a nonpartisan research organization, it was discovered that 62 percent of Americans surveyed do not invest in cryptocurrency because they do not understand the market is the least reason the surveyed Americans are not investing in cryptocurrencies. Price volatility got 30%.
Where crypto asset buyers or investors get information about crypto assets
According to the survey, American crypto asset buyers or investors get information about crypto assets mostly through the crypto exchanges (26%), general trading platforms like Fidelity or Robinhood (25%), or social media (24%). How about the broker or advisor? Only 2%.
The crypto market should expect new American crypto asset buyers or investors within the next one year
Of the Americans surveyed, 11% indicated they were extremely or likely to begin trading in the next 12 months. Compared to those trading stocks (24%), 13% of the Americans surveyed report purchasing or trading cryptocurrencies in the past 12 months.
What could the NORC survey mean for the crypto asset buyer?
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