Earlier this month Bitcoin entrepreneur Trace Mayer noted that there’s a mountain of money just waiting to move into the cryptocurrency space just as soon as they feel confident that the market is stable, regulated against fraud and they see confirmation of mass adoption through real-world use cases.
At the moment, cryptocurrency penetration remains tiny compared to that of traditional investment classes being traded on global stock market exchanges, but a new survey finds that investment interest and capital flows are picking up.
According to Finder.com, which commissioned the survey, about 7.95% of Americans have already purchased cryptocurrencies, demonstrating that people are beginning to understand the utility behind the blockchain and the potential it may hold for future technology.
Finder recently commissioned a survey of 2,001 American adults to gain insight into what the nation thinks of cryptocurrency. Surprisingly, only 7.95% of American adults report actually purchasing a cryptocurrency.
But that leaves 92.05% of Americans who have not yet made the move.
Of those who haven’t purchased crypto, 7.76% say they have plans to purchase crypto in the future. The reason from 40.01% of those who haven’t yet purchased crypto, representing more than 90 million Americans, is because they are disinterested or they think there’s no need. This reason is followed by 35.02% who say that the risk is too high, 27.04% who find it too difficult to understand and 17.97% who say it’s a scam.
While plenty of crypto proponents might disagree, 16.12% are waiting for what they think is a bubble to burst. A further 11.40% find it too difficult to use, and 5.75% think that there are too many fees involved.
As government regulations begin taking hold and trust begins to be established utilizing similar rules and legalities that we find in public companies trading shares on broader stock exchanges, we can fully expect everyone from major financial institutions to average retail customers to start diversifying their holdings into digital assets.
According to the survey, that there is a mountain of money on the sidelines waiting deploy into the right crypto assets isn’t just hype. The reality is that of the 92.05% of people who have not yet invested in the sector, at least 8% report that they will do so eventually.
That means just in the United States there are 24 million people actively preparing to move into the market.
Though no such surveys exist for other countries who have seen a significant build up in cryptocurrency interest over the last 12 months one could surmise that investors in China, Japan, South Korea, Russia, India and Europe share the same sentiment.
Within that context, which includes a combined population of over 2 billion people, the 24 million Americans are waiting on the sidelines is just a small drop in a huge bucket.
If we were to cut the U.S. based sideline investor interest percentage by half, meaning that 4% of the people in the above mentioned regions move into cryptocurrency assets as part of their investment portfolios, we’d be looking at an additional 80 million investors at the very least. This is, of course, just speculation, but if true could indicate that a massive ramp-up in blockchain investing is coming in the near future.
Moreover, as Trace Mayer noted in his aforementioned interview, it’s not just retail investors who are shifting into blockchain. Mega corporations, financiers and large banking conglomerates are actively working on the technology, as well as investment vehicles that could soon make cryptocurrency assets a part of weekly 401k and crypto IRA deposits.
The numbers are almost too big to wrap your head around when you consider the possibilities, and could well be multiple trillions of dollars of global investment capital.
Does that mean Bitcoin goes to $1 million per coin as some have predicted?
Maybe, but much of those funds will also flow to top projects that demonstrate real-world success and profit.