The online web platform CouponFollow conducted research among over 1,100 individuals who have not entered the crypto market to determine what is stopping them from doing so. 42% said they don’t understand the value of digital assets, while 35% admitted they stay away because it “seems like a scam.”
The reasons for hesitation
Cryptocurrencies, especially bitcoin, have rapidly increased in popularity over the past few years. On the one hand, the main digital asset was legal tender in El Salvador and The Central African Republic. At the same time, its merits, such as decentralization, transparency and accessibility, are often praised by many experts and eminent personalities.
However, it’s still safe to say that the majority of the globe’s population remains unconvinced about the asset class. According to CouponFollow, the interest in crypto spikes significantly when bitcoin or some altcoins reach all-time high prices. On the contrary, individuals withdraw their enthusiasm when the USD valuation heads south like in the past few months.
Non-HODLers crypto also shared their top reasons for not jumping on the bandwagon. 42% said they don’t understand the value of digital assets, while 39% worry about their volatile nature.
Critics of the sector often describe cryptocurrencies as a scam. 35% of the survey respondents agreed with that assumption, while 31% said they have not diversified their portfolios due to “security concerns.”
Interestingly, almost one in five people installed a cryptocurrency exchange mobile app but ultimately did not purchase any tokens. “Insufficient knowledge” of how to buy, “worry about price fluctuations” and “security concerns” are the top three reasons.
What Do Other Surveys Say?
Despite the aforementioned skepticism that some people might have, cryptocurrencies have become an attractive investment option for numerous investors. Younger generations, especially millennials, seem to be the most intrigued.
A recent CNBC study valued that 83% of millennial millionaires own digital currencies, while 48% intend to increase their holdings in 2022. More than half of participants admitted to investing more than 50% of their wealth in crypto .
Other analyses evaluated that the digital asset sector gained massive popularity in 2021. For example, a Huobi research determined that nearly 70% of all investors jumped on the bandwagon last year. This assumption comes without surprise since, in 2021, most coins recorded all-time high prices and thus caught the attention of broad society. In comparison, only 9% said they entered the ecosystem more than four years ago.
Subsequently, a StarkWare poll revealed that 53% of US participants view cryptocurrencies as “the future of finance.” Unsurprisingly, this percentage is higher among younger generations. 68% of 25-34 year olds and 61% of 35-44 year olds believe in this concept.
