Bitcoin has become a buzzword that has crept into our day-to-day lives. The hype is so annoying that it seems that everyone is familiar with cryptocurrencies and is invested in them. However, according to a new YouGov survey, most Americans do not consider investing in bitcoin or any other digital coin and are skeptical as to the usefulness of cryptocurrencies.
YouGov, an international research data and analytics group, interviewed 1,715 American adults in the middle of July and, according to this survey conducted for Yahoo, most Americans (89%) have heard of bitcoin. Somewhat surprising is the share of younger respondents who have heard of bitcoin, which is less than the respective share of older survey participants (see Chart 1).
Only 27% of the respondents who have heard of bitcoin consider investing in it or in any other digital coin; older participants however were less inclined to consider investing in bitcoin, as one would expect. Interestingly, the willingness to consider investing in cryptocurrencies was higher with people who have over $100,000 in annual income (see Chart 2).
83% of those who know about bitcoin do not own it or any other cryptocurrency and 62% of those who are familiar with bitcoin don’t find cryptocurrencies useful.
However, when respondents were able to choose which asset class they were more likely to invest in, the majority of them picked the stock market. It is important to mention that the likelihood of investing in stocks was greater with individuals with higher incomes, with the likelihood of investing in cryptos being more or less the same regardless of the income level (see Chart 3).
13% of the respondents familiar with bitcoin said they own cryptocurrency. However, only 8% of those who have heard of bitcoin picked digital coins as the instrument they are more likely to invest in. Therefore, it is important to note that many individuals who currently possess digital coins are more likely to invest in instruments other than cryptocurrency.
The mentioned YouGov poll is called “Yahoo! News COVID-19 Vaccination Survey”. Therefore, the survey also examined whether the responses of people who have been vaccinated against COVID-19 differ from those of unvaccinated individuals. And there is one interesting observation we can make: bitcoin and other cryptocurrencies are clearly more popular with unvaccinated respondents.
The bottom line
Americans are aware of bitcoin and other cryptocurrencies. However, despite all the hype, most of them do not consider investing in digital coins. Instead of putting money into such a risky asset class as cryptocurrency, most Americans say they are more likely to invest in the stock market. Stocks are even more popular among the people with higher incomes. We believe that a well-diversified and professionally managed portfolio of stocks is the best choice an investor can make.
Disclaimer Risk Warning: The information in this article is presented for general information and shall be treated as a marketing communication only. This analysis is not a recommendation to sell or buy any instrument. Investing in financial instruments involves a high degree of risk and may not be suitable for all investors. Trading in financial instruments can result in both an increase and a decrease in capital. Please refer to our Risk Disclosure available on our website for further information.