As Bitcoin headed for its 434th 'death' this weekend amid a sudden downswing (which has since been bid back up), a survey by Grayscale confirms that investors are embracing Bitcoin and worry less than they did in previous years about the systemic risks, chief among which are cyberattacks, volatility, and regulation.
All respondents were between the ages of 25 and 64, and had primary or shared responsibility for household financial decision-making. All respondents were involved in some form of personal investing, with at least $10,000 in household investable assets (excluding workplace retirement plans or real estate), and at least $50,000 in household income.
The Grayscale survey finds that the slice of Americans who own Bitcoin has increased to 26% in 2021 from 23% in 2020.
Another sign that investors are increasingly treating Bitcoin as a store-of-value asset is the fact that many are choosing not to sell their position. More than half (55%) of investors polled invested in Bitcoin for the first time over the past 12 month period. Among this cohort, most investors continue to hold their Bitcoin today, underpinning the theory that Bitcoin is viewed as a long-term investment.
This confirms what we detailed over the weekend, that dip buyers were retail and whales while the sellers are medium accounts - mostly likely shorters, who are trying to spook the market; and further, this means that most people are not incentivized to sell here as they are not dramatically underwater (unless levered of course).
“It is becoming increasingly difficult for investors to ignore Bitcoin as its price continues to rise.”
In fact, Bitcoin is currently trading almost exactly at its average price for 2021...
Moreover, Grayscale notes that their survey shows more than half (55%) of investors perceive Bitcoin as a long-term play that fits into their overall investment strategy.
It's not just Bitcoin though as Grayscale note that more than half of investors were aware of Dogecoin and Ethereum. Almost three-quarters (74%) of investors have heard of Dogecoin, surpassing the level of awareness around Ethereum (56%). Litecoin, Cardano, and Tether are also on investors’ radar, with the awareness level hovering above 25% for each of them.
And most investors who own Bitcoin also own at least one other cryptocurrency:
Importantly, investors are well aware of the high risk that crypto carries... (so perhaps 'we, the people' can look after ourselves without the nanny state in DC 'helping' us)...
Finally, we note that despite all the 'doomsaying' by the Mungers, Yellens, and Warrens of the world, more than 30% of investors want Bitcoin offered at more financial institutions.
Perhaps, protecting your personal sovereign identity is more important to many Americans than following the pre-approved narrative, and sliding into a 'Black Mirror'-esque future dominated by CBDCs.
Despite a number of the so-called elites (whose lifestyles rely on the status quo) continuing to voice skepticism about Bitcoin and the digital currency asset class, the Grayscale survey shows that investors have demonstrated not only a willingness but a desire to make room for Bitcoin in their portfolios. In addition, Bitcoin acceptance has become a cross-generational phenomenon, with baby boomers increasingly interested in gaining exposure to Bitcoin investment products.