Despite the record rise in the price of bitcoin and the popularization of the asset among institutions, three-quarters of investors still consider bitcoin to be a bubble.
A little more and will surely burst
The latest research by analytical company Xangle, which was conducted among 379 accredited investors, shows that 72% of investors are still convinced that Bitcoin is a bubble that will burst soon.
Investor portfolio size
Nevertheless, 79% of respondents invest in cryptocurrency for long-term and short-term speculation, as they see bitcoin as a store of value that will bring high returns either through short-term investments or through buying and holding.
Most investors have already invested in bitcoin
It is noteworthy that more than 40% of the investors who participated in the survey already have cryptocurrencies in their investment portfolio and do not think to get rid of them yet.
Assets in the portfolio of investors. Source: Xangle
According to the survey, blue-chip stocks, 401 (k) s, small-cap stocks, bonds, IRAs, cryptocurrencies and tokens, index funds, investments in startups, ETFs, commodities, hedge funds remain the key investment assets in investor portfolios. and other investments such as options and derivatives.
“More than half of those who invested (61.7%) did so because of long-term speculation, believing that it is best to buy and hold bitcoin. About 16.9% have invested in short-term speculation, buying and then believing that they will sell bitcoin quickly. This indicates that MTC is more attractive as an investment instrument, and not as a means of payment, ”the report says.
Another 8.6% of investors said they invested because they wanted to use Bitcoin as a decentralized alternative to government-backed currencies, which was its original goal. About 2.6% invested because support for decentralized currency, privacy, and censorship is better aligned with their beliefs. Finally, 6% invested because they were interested in learning about the technology.
Reasons for Investing in Bitcoin
The authorities must take control of cryptocurrencies
78% believe regulators need to protect investors more. Many respondents believe that the factors holding back investors from cryptocurrencies are lack of regulatory protection, fraud, and a lack of awareness and education in the industry. More than half of investors, namely 53%, are sure that Bitcoin is a Ponzi scheme.
More than half of investors believe bitcoin is a Ponzi scheme
The same number of respondents are confident that Bitcoin is a bubble that will burst in the near future, causing damage to investors.
Half of investors believe bitcoin is a bubble
This view is shared by US Attorney General Laetitia James, who recently called Bitcoin a “high-risk asset and bubble.”