How Long Do Investors Plan To Hold Onto Bitcoin?

Did investors buy bitcoin because it was trendy, or are they committed to cryptocurrency for the long haul?

As in any new and rapidly-growing market, Visual Capitalist's Jeff Desjardins explains that this kind of investor intent and the overall feeling of market sentiment matters a lot. That’s because there are no historical averages or ratios to apply as baselines for value, and if things head south there is always the possibility of a mass exodus.

Courtesy of: Visual Capitalist

BUY, HODL, AND PROSPER?

Today’s infographic comes to us from Raconteur, and it helps map out the future price expectations of crypto investors, along with how long they plan to hold onto their digital assets.

But before we get to that, let’s look at why investors bought into the market in the first place:

When did people get into the market?

More than 60% of investors got involved in cryptocurrency in 2017, and 56% of investors that hold crypto plan to buy more in the next 12 months.

FUTURE EXPECTATIONS

What do people expect crypto prices to do in the future, and how long are investors willing to hold?

According to a survey of 1,800 crypto investors around the world at the end of March 2018, a whopping 77.9% see the crypto market gaining more than 30% in value over the next three years.

Meanwhile, another poll from November 2017 asked investors how long they will hold onto their assets:

Only 16% of respondents planned to sell within the next year, and 44% of respondents said they’d hold onto Bitcoin for four or more years.

CONCERNS ABOUT EXCHANGES

Exchanges are the lifeblood for buying or selling cryptocurrency – so what are the major concerns held by investors about them?

Security continues to be a topical issue for traders, which is not surprising since it’s estimated that $1.2 billionof crypto has been stolen since 2017. Other issues like high trading fees and the lack of liquidity and lack of currency pairs also poll high.

Comments

gdpetti BallAndChained Wed, 06/27/2018 - 12:02 Permalink

That's what one guest on the BtC  promoter Max Keiser show stated... like with most of the 'dot.coms', they go to zero... but a few survive... whether it's some crypto or hastag etc accounting methodology or another... doesn't matter... it's the principles that matter.. they will survive ... but it's the same crew of banksters behind it as now... it's all part of the real 'regime change'.. 'out with the OWO, in with their NWO'.

We live in one level of 'Purgatory'... 'dark side' rules here... until 'school' ends... and then the real accounting is taken for 'graduation'.... that's why the SG puppet masters are pushing this regime change... to create as much chaos/negative energy as possible to reach their NWO escape velocity... all being done on a much larger scale than this crypto craze...

As long we this school called purgatory is in session, 'they' rule the herd..  crypto is fake for the most part... some are trying to do make it real, but they fail to realize the nature of the larger game, the larger picture... and Mother Nature is set to arrive in a few years, which will make it a rather mute point.. but it does indicate the will of the people, which does matter in the larger 'game'... this is what the 'action' is about... not the corrupt system that created it... .as with all chaos, the question is what comes out of it.

Of course, the overwhelming majority will hold till it's worthless... that what all sheep do... this is how we all learn, the hard way.... I've done it a few times... .no pain,  no gain... it takes a lot of hard knocks to crack the shell/spell we're under...

In reply to by BallAndChained

oDumbo A wind is rising Tue, 06/26/2018 - 22:22 Permalink

Well, let's see... you could buy xyz manufacturing, which goes up or down 0.5% annually.  Wow, that's exciting.  Or...wait, you could go online and bet chicken fights in Reunion Island or dog races in Mogadishu... wait, those are probably fixed. 

 

So you see, crypto is not only a nascent technology with massive potential application and adoption, it's a cozy hybrid of craps and railroad bonds with a large selection of risk / return profiles. 

 

This is the truth of the matter, so just ignore it if you don't understand it or try to appreciate it for what it really is, a shit ton of fun that fills a huge gap in many people's lives and portfolios. 

In reply to by A wind is rising

nekten oDumbo Tue, 06/26/2018 - 23:00 Permalink

At the bottom of the stack of stuff I hold as assets is money I'll hopefully never need to use. This is "fuck you money." I'll take the risk for it to go to $0, along with the possibility it could rise dramatically. I don't imagine I'll be trading it in for fiat, or for PMs for that matter--of which I do have some.

Without something earth-shaking, the trade of BTC for something else will probably be done by my heirs. Not likely by me.

In reply to by oDumbo

lester1 nmewn Tue, 06/26/2018 - 22:09 Permalink

Bitcoin's price is way too unstable to ever be used by businesses. Therefore mass adoption will never happen. That is why Bitcoin is worthless and NOT a safe store of value. A safe store of value doesn't crash -5% in a day.

​​​​​​

I feel sorry for those greedy HODL'ers who cashed out their savings and 401k to buy Bitcoin. They're going to get wiped out. Good luck suing Coinbase or Gemini! 

 

Vote me down if you're a HODL'er and I hurt your feelings..

In reply to by nmewn

NakedSnake Tue, 06/26/2018 - 22:09 Permalink

Bitcoin or any of these shitcoins is not a revolutionary technology, the blockchain is. Any fool who's HODL'ing today more than likely bought it on a pure speculation play and can't bring themselves to cut their losses from missing the top. 

 

The intrinsic value of these coins is the same as the US dollar - ZERO! 

Mine Is Bigger NakedSnake Wed, 06/27/2018 - 01:05 Permalink

You probably read in some mainstream media articles that the real innovation is blockchain and simply bought it without giving much thought.

You do realize there is no point in blockchains if they are not dencentralized, right?

Without a mechanism for creating and maintaining a decentralized blockchain, blockchain is just an idea.

Bitcoin is a revolutionary technology that makes a blockchain possible in the real world.

 

In reply to by NakedSnake

adr Tue, 06/26/2018 - 22:10 Permalink

It was this time last year when the ICO market started going full retard and the pumpers were saying that by now every app on your phone would be blockchained and these $.0005 tokens would be worth millions.

Still not seeing anything taking over.

Oldguy05 Tue, 06/26/2018 - 22:10 Permalink

Fcin wish I bought it when it was less than a dollar! JMbullion takes bitcoin.....could of had way more ounces than I have now! I'm not complaining. Nowadays with the big money....screw that.....just dream about the days I could have bought it for fity cent.

Still like my gold silver and platinum. Lost in an expedition to save it for posterity. The I phone we saved the coordinates on was stolen by a heroin/fenanyl addict.

A wind is rising Tue, 06/26/2018 - 22:35 Permalink

"....1,800 crypto investors..."

The phrase is pure BS and it tells the tale.  Anyone who has put any money into cryptocurrencies is a speculator pure and simple.  The time horizon of crypto is such as to exclude the term "investor".

The simple fact of the matter is that cryptocurrencies, using Bitcoin as a generic proxy, experienced a historical speculative bubble.  Fact: the bubble burst.  Typical post-spec bubble price behavior is for the price to revert to near or equal zero.

Under a cancelled screen name here on ZH I directed comments to tmosley and other speculator lost souls when I wrote that the BTC/USD would  top out around the CME futures debut - and I drew the similarity of the occasion to the USD price of gold topping approximately coincident with its US futures debut in December 1974.  My BTC entry position averaged USD550 and I liquidated most around USD15000 following the all-time peak (spec gains were reported as a USA citizen to the IRS).

The CME contract debut of BTC was manna from heaven to anyone/institution that owned physical possession of BTC.  Whoever passed up the opportunity to hedge their cash long with futures missed the literal chance of a lifetime.

The rest is history.

Maybe BTC has legs.  In that case it will do what gold did post-1975: stabilize and then renew an upward USD price grind.  In that scenario, anyone not holding BTC now will have a long period in which to determine that it warrants being purchased.  If not that, then BTC will be relegated to that cliche - the dustbin of history- and it will zero out any speculator who did not at least cash out his original cost basis at a premium.

Charvo Tue, 06/26/2018 - 22:48 Permalink

I would imagine Bitcoin miners are selling their bitcoins right after mining them just to pay for the electricity and the debt for buying the equipment.  Bitcoin needs to go up in order for this selling pressure to stop because these miners aren't in it for the long run but rather the short-term profit.

Cutter Tue, 06/26/2018 - 23:34 Permalink

Wait a second. You believe its "world changing technology" but the majority are only willing to hold "1 to 3 years?"  LOL.  Spelled differently, "SPECULATION."

CHX13 Wed, 06/27/2018 - 03:11 Permalink

The more interesting question IMHO is, what will be the future BTC/gold-ratio? Fiat in the long run is toast as the debt system is unsustainable and has to grow forever thereby creating hyperinflation at some point.

Will crypto have a "future" once the financial system starts unravelling and then collapses for good? Will there be a successful reboot? Will the world economy make a (gold-backed) comeback? Will the blockchain technology overview the gold market? Will we have the energy and resources for such a system or are we going back to a globalized barter-system, again using gold (how barbarous)... Or will they simply pull the truly and terminally nuclear option instead of admitting defeat (of fiat/debt to gold)?

 

All I know is that we're living in an illusion and our "reality" is one big delusion. At some point the consequences of reality are going to bite us all in the a$$ big time.