It has been a full 12 years since cryptocurrency was created by the mysterious Satoshi Nakamoto. The currency presents an alternative to traditional monetary systems and as such has found a host of proponents and challengers.
Those who believe in it most could have predicted the latest behavior of investors, while those who are resistant to crypto and the blockchain likely could not.
Investors are now being bullish about cryptocurrencies and as a result are putting more money toward digital assets than traditional stocks.
Cardify, which specializes in consumer spending data, surveyed over 1,300 crypto investors and discovered a trend over the last year and a half.
As outlined in Cardify’s recent article, cryptocurrency has been around for years, but became more prevalent in 2021 than any year prior. Bitcoin, founded by Satoshi Nakamoto, saw some volatility by both reaching new heights and crashing numerous times just as new altcoins entered the market.
Still, investor interest is piqued.
“With the exception of the Reddit-fueled trading frenzy of early 2021, consumers have never been so invested in crypto as they have in the past year and a half,” according to Cardify.
Crypto now represents a second all-time high 24.7% share of total investment deposits, or another way of looking at it as spelled out by CNBC reporting: “In September, crypto investors put an average of $263 into accounts dedicated to coins, more than the average $250 they put in traditional brokerages during the month.”
Amber Foucault head of product at Cardify noted that investor behaviors have noticeably shifted. Thus far in 2021, almost 25% of the money investors are socking away is going to crypto, a massive jump from 5% last year.
Cardify took the survey a bit further and gathered information about how much investors understand about crypto, their outlook on celebrity crypto endorsements, opinions about altcoins and the risk associated with cryptocurrency investing.
What the company sussed out is that novice investors are the ones spurring the shift to cryptocurrencies over stocks, with around 70% of those surveyed stating they had been trading crypto for less than a year.
Cryptocurrency, the blockchain and altcoins are, by nature, complex. Crypto and the functioning of the blockchain must be studied to be fully grasped. Of those surveyed crypto investors, only 15% said they had a solid understanding of the value and potential of crypto; a little less than half claimed a moderate understanding; and 37% said they only learned about crypto through word of mouth.
Thus, many are investing with only a moderate or minimal understanding of the currency.
Continued education on crypto is encouraged, whether already invested or considering investment, according to CNBC.
Though there has been recent volatility, it is worth noting that bitcoin is up around 130% year to date. Ethereum also saw a recent jump, according to CNBC.