- Some 55% of US
bitcoin owners got into thecrypto this year, a sign of growing demand,Grayscale said. - Most of the newbies are still holding their positions, it found in its 2021 bitcoin investor study.
Bitcoin isn't seen by investors as money, but is increasingly viewed as "digital gold," a study by Grayscale Investments has found.
Demand for the leading cryptocurrency surged in 2021, as interest grew despite the token's typical price volatility, the crypto firm said.
Grayscale's research arm surveyed 1,000 people in the US, aged between 25 and 64, for its 2021 bitcoin investor report released Monday. More than one-quarter, or 26%, of those surveyed already own bitcoin. Of those holders, 55% only got into the token in the past 12 months.
"Investors are eager to buy, a sentiment reflected by the recent all-time high in November 2021, placing bitcoin closer to $100,000 than it is to zero," Grayscale said.
A majority of bitcoin owners prefer to invest via trading apps like eToro or Coinbase. That marks a shift from last year, when a greater chunk favored a crypto exchange.
Bitcoin hit a peak of $68,521 on November 5, and is up 75% so far this year. But it has seen wild swings over the past 12 months, although these don't appear to have fazed investors.The digital asset saw a liquidation cascade on Saturday, which rapidly sent its price tumbling to around $42,000. It has since recovered and was trading near $51,000 at last check Monday.
Most investors who began their bitcoin journey this year are still "hodling," or hanging on to their positions, the study showed. And about 66% of those who bought the asset more than 12 months ago still own it today.
Grayscale noted factors such as El Salvador adopting bitcoin as legal tender and rising consumer price inflation making fiat money less valuable. These have made 2021 a pivotal year for the cryptocurrency's acceptance, it said.
"While it is encouraging to see attitudes towards crypto continue to evolve, it's still early days for this industry," Michael Sonnenshein, CEO of Grayscale Investments, said in a statement.
"It's incumbent on all of us to remain focused on educating the investing public, so investors — across generations and demographics — can access this once-in-a-generation opportunity."
Separately, a majority of bitcoin owners, or 87%, were found to own one or more other digital currencies.
Of those who traded for gains, 91% sold at least some bitcoin at a profit, according to the study. Another point to note is that the number of those interested in bitcoin investment products has risen steadily in the past couple of years.
About 59% of those surveyed indicated an interest in this segment, marking a notable increase from the 55% who were interested in 2020 and just 36% in 2019.
The amount of women who would consider such investment products increased 6% versus 2020 levels, while growth was flat for male investors.
Grayscale's online survey of 1,000 consumers based in the US was conducted by financial market research firm 8 Acre Perspective between August 12 and August 20, 2021.