- Posted by: UKDE
- Category: Bitcoin, Crypto, Cryptocurrency, Investment
5.4% of people own cryptocurrencies worldwide, with around one quarter reporting that they have no other savings besides the pensions and monetary savings. The remainder tend to hold investments in stocks, bonds and assets such as precious metals.
The past has shown cryptocurrencies to have great returns for the early day investors, and whilst many will tell you that the salad days of bitcoin and those that came after it are over, using the time the currencies flew too close to the sun, which saw values plummet during the crash of 2018 as evidence of that – all it did was expose the structural vulnerabilities of a young currency.
Some may have seen the crash as the doom of cryptocurrencies and reaffirmation of the status quo – fiat will always be king and none would ever grace its table, at least not beyond the first course.
The weakened cryptocurrencies didn’t end up in a barren wasteland to end its days, instead the grounds still had swathes of fertility, and that started a new stage in its lifecycle. This marked the start of them evolving into a mature currency, one which is more stable and provides a more viable options for longer term investment on a wider scale. The Cambridge Centre for Alternative Finance’s findings that the number of verified cryptocurrency user account openings doubled in the first three quarters of 2018, act as an overwhelming indicator that confidence continues to grow despite past issues.
Since its inception, cryptocurrency use and investment has had a large overrepresentation of men, especially younger men – often those who are risk tolerant, libertarian on the political spectrum and those with business interests. The audience is famously limited, but recent years have shown growth in moving away from this. It may not be spectacular, but a 70/30 gender split is a significant improvement.
There are many reasons why women are slowly turning to cryptocurrencies, and a Coinbase survey has shown that 39% of millennial women say they would be more interested in cryptocurrencies if they knew that it can be used to make finance more accessible. In this finance can be used as a vehicle for freedom and with that comes empowerment. In the case of women, this comes more into play when we turn attention to societal differences across the globe which see women having restricted access to bank accounts. The ability to be financially independent is something most of us value highly and women have reason to value it more.
In what was perhaps an unexpected twist, the idea of the crypto-community being a gathering of people cynical of the government and financial institutions is outdated when speaking about most holders. When new times are ushered in, with it flows a wave of new attitudes, this one being more optimistic about the world economy, with the GlobalWebIndex finding that 58% of cryptocurrency holders felt that way, whilst those with no investments or cryptocurrencies saw figures fall to 43%. Seeing as those who had investments beyond cash savings, pensions and no investments in cryptocurrencies reported 52% global economic optimism, there’s a case to argue that the economic engagement to the degree that sees people investing show more optimism, as they have taken measures to have some control of their financial future in the face of wage stagnation and increasing inflation rates, as a way to increase their wealth – willingness to make high risk investments often needs economic optimism as a way to calm nerves or act as a call to action, but the optimism doesn’t come from nowhere, it comes from knowledge.
Awareness and education are the biggest barriers when speaking of cryptocurrency adoption rates, as evidenced in a study carried out in a study titled “Bitcoin Awareness and Usage in Canada”, of the people involved in the survey, when asked to give their main reasons for owning Bitcoin, 60% said they either their current payment methods met al their needs or the they didn’t know much about the currency. In a time where society is able to enjoy easy payments on a grand scale, so it’s normal many wouldn’t feel the need to venture out and find alternatives which could benefit them further – in their eyes, they have all they’d need out of payment methods for their daily lives. Whilst this may not cause many to seek out the likes of Bitcoin, the findings to go ways of explaining how cryptocurrency use rates could increase over a sustainable period.