The online web platform CouponFollow conducted research among over 1,100 individuals who have not entered the crypto market to determine what is stopping them from doing so. 42% said they don’t understand the value of digital assets, while 35% admitted they stay away because it “seems like a scam.”
Reasons Behind the Hesitation
Cryptocurrencies, particularly bitcoin, have rapidly expanded their popularity over the past few years. For one, the primary digital asset became legal tender in El Salvador and the Central African Republic. At the same time, its merits, such as decentralization, transparency, and accessibility, are often touted by numerous experts and prominent individuals.
However, it’s still safe to say that the majority of the globe’s population remains unconvinced about the asset class. According to CouponFollow, the interest in crypto spikes significantly when bitcoin or some altcoins reach all-time high prices. On the contrary, individuals withdraw their enthusiasm when the USD valuation heads south like in the past few months.
The crypto non-HODLers also explained their main reasons why they have not hopped on the bandwagon. 42% said they don’t understand the value of digital assets, while 39% are concerned about their volatile nature.
Critics of the sector often describe cryptocurrencies as a scam. 35% of the survey respondents agreed with that assumption, while 31% said they have not diversified their portfolios due to “security concerns.”
Interestingly, nearly every fifth person has installed a cryptocurrency exchange mobile app but didn’t end up buying any tokens. “Insufficient knowledge” of how to purchase, “worry over price fluctuations,” and “safety concerns” are the top three reasons why.
What Do Other Surveys Say?
Despite the aforementioned skepticism that some people might have, cryptocurrencies have become an attractive investment option for numerous investors. Younger generations, especially millennials, seem to be the most intrigued.
A recent CNBC study estimated that 83% of millennial millionaires own digital currencies, while 48% intend to increase their holdings in 2022. More than half of the participants admitted investing over 50% of their wealth in crypto.
Other analyses evaluated that the digital asset sector gained massive popularity in 2021. For example, a Huobi research determined that nearly 70% of all investors jumped on the bandwagon last year. This assumption comes without surprise since, in 2021, most coins recorded all-time high prices and thus caught the attention of broad society. In comparison, only 9% said they entered the ecosystem more than four years ago.
Subsequently, a StarkWare poll revealed that 53% of the American participants view cryptocurrencies as the “future of finance.” Unsurprisingly, this percentage is higher among the younger generations. 68% of those between 25 and 34 years old and 61% of the 35 to 44 years old believe in this concept.