2020 was a yr of great progress within the cryptocurrency trade. We noticed Bitcoin attain new highs, as famend monetary establishments invested on this revolutionary asset class and enthusiasm throughout the market bounced again.
Final yr, bitFlyer Europe performed the survey in European international locations measuring the consciousness and religion within the way forward for crypto. Again then two thirds of Europeans admitted to having religion that cryptocurrencies will nonetheless exist in 10 years’ time, nevertheless the bulk are nonetheless unsure how they are going to be used.
In September 2020, when evaluating our information from 2020 to 2018, we’ve seen a rise in accounts opened by customers of their 20s within the first half of 2020 at group degree.
As a international cryptocurrency trade that has workplaces, amongst others, in San Francisco, CA, and Tokyo, Japan, this time we determined to dive deep into the present state of investing and cryptocurrencies within the US and Japan, and discover the variations between these two large and attention-grabbing markets. Our survey focused 3000 members aged 20-59 throughout Japan and the US.
Key findings from our analysis:
- Two-thirds of individuals within the US mentioned they’re focused on investing extra in monetary property in 2021.
- 30% of People suppose Bitcoin/Cryptocurrencies might be a gorgeous funding this yr, making it two instances extra in style than Gold and the 4th most chosen asset. The most well-liked asset was shares at 54%.
- 82% of the US inhabitants has heard about cryptocurrencies.
- Roughly 20% of respondents within the US are at the moment utilizing or have used cryptocurrencies previously.
- 76% of individuals within the US which have heard about crypto have a optimistic notion about cryptocurrencies as an funding. In Japan, 78% of the respondents have a destructive notion, displaying a fairly robust distinction between the 2 areas.
- Our analysis reveals that the present market sentiment amongst American buyers is very bullish in comparison with the Japanese, reinforcing the argument that the final run-up in value was primarily pushed by US buyers.
The State of Investing
Our analysis reveals that 82% of individuals within the US spend money on monetary property, with virtually a 3rd of the inhabitants allocating over 1 / 4 of their web value into investments. However, in Japan, 69% of individuals don’t spend money on monetary property, displaying a major distinction throughout the 2 areas.
In each the US and Japan, males have a tendency to take a position greater than ladies, whereas additionally allocating a better share of their web value into their investments.
There’s additionally a major distinction within the outlook for investing this yr. 68% of respondents within the US are planning to take a position or proceed investing, whereas that determine is solely 18% in Japan.
Why are individuals investing in 2021?
Throughout the globe, one of the in style causes individuals wish to make investments this yr is to put together for the long run and enhance their long-term web value. A big share of respondents wish to diversify their revenue by way of investments and consider that investing is the strongest and quickest manner to develop their capital.
“With the intention to construct your wealth, you’ll want to make investments your cash. Investing permits you to put your cash in automobiles which have the potential to earn robust charges of return. For those who do not make investments, you might be lacking out on alternatives to extend your monetary value.” — (male in his 30s, US)
After final yr’s occasions, extra individuals are being attentive to the market in hopes of capitalizing on a potential financial rebound this yr.
“This can be a nice time to take a position, hopefully issues can solely get higher and go up.” — (feminine in her 30s, US)
Low rates of interest are additionally fueling individuals’s motivation to allocate their wealth into funding property. We are able to see an identical development in Japan.
“Curiosity is just too low for deposits and financial savings. I feel it’s higher to handle your capital with some threat” — (male in his 40s, Japan).
Why are individuals not seeking to spend money on monetary property?
There’s an attention-grabbing distinction in why individuals are not seeking to make investments throughout the 2 areas. One of the in style the reason why individuals within the US should not planning to take a position this yr is due to monetary challenges created by the COVID-19 disaster.
“I’ve no job at the moment, so no revenue. Cannot make investments what you do not have” — (male in his 30s, US)
“Cash could be very tight because of the pandemic” — (feminine in her 30s, US)
Our information reveals that, logically, individuals with decrease incomes are 40% much less more likely to make investments. This, amidst the current surge in COVID-19 instances and modifications in energy within the US, has elevated individuals’s uncertainty and concern of what’s going to occur subsequent on the macroeconomic degree.
What’s most attention-grabbing, nevertheless, is that the essential cause why People don’t make investments isn’t due to the dangers of shedding cash. They primarily don’t do it as a result of they don’t have the required sources. In Japan, it’s a distinct story.
Whereas the financial impression from the COVID-19 disaster additionally impacted many individuals’s potential to spend money on Japan, nearly all of those that mentioned that they don’t seem to be seeking to make investments highlighted the potential dangers related to investing, slightly than a scarcity of sources to take action.
“I do not wish to lose even 0.0001% of my cash. I do not wish to spend money on something that has the danger of shedding even a small amount of cash. Nevertheless, if there’s a no-risk, high-return funding, I’ll undoubtedly do it” — (male in his 40s in Japan)
“I feel funding is similar as playing. I do not wish to do harmful issues like shedding cash.” — (Male in his 30s in Japan)
“I do not know learn how to do it, and it appears that there’s a excessive threat of loss.” — (feminine in her 30s in Japan)
There’s a transparent distinction within the sentiment in the direction of investing between the 2 areas. We see individuals within the US being much more open to investing and having a much bigger want to diversify their revenue by way of investing. In Japan individuals are likely to have a way more cautious stance.
The State of Crypto
Cryptocurrency adoption is larger within the US than it’s in Japan. Within the US, 22% of respondents have invested in crypto sooner or later – over 4 instances larger than Japan.
Equally with investing, the sentiment in the direction of cryptocurrencies is quite a bit stronger within the US than it’s in Japan. 76% of the respondents within the US who’ve heard about cryptocurrencies have a optimistic notion about cryptocurrencies as an funding, whereas in Japan it was the exact opposite.
What’s driving individuals’s optimistic notion about cryptocurrencies?
Individuals like cryptocurrencies within the US and Japan for very comparable causes. One of the in style ones is the growing reputation of cryptocurrencies and its outstanding rise in value, which makes it a really engaging funding.
“Cryptos are rising at a quick charge and I really feel they are going to continue to grow and be very worthwhile” — (male in his 20s, US)
“I noticed within the information that the worth has elevated not too long ago” — (male in his 20s in Japan)
But it surely’s not solely its run-up in value that’s getting individuals’s consideration. Many respondents highlighted crypto’s worth propositions and consider in its long-term worth.
“I really feel [cryptocurrencies] put you in management versus large Wall road companies. You should purchase/promote 24/7. Some have fastened amount versus shares that may at all times subject new shares and so forth” — (male in his 50s, US)
“Cryptocurrency appears to be gaining momentum with the fallout of world and nationwide foreign money programs.” — (feminine in her 20s, US)
Furthermore, in 2020 we noticed a wave of establishments coming into the cryptocurrency area, and individuals within the US seen. Institutional participation solidified individuals’s long-term outlook for crypto, and even their notion of it.
“Massive establishments have been beginning to purchase crypto, which may drive up shortage and due to this fact the worth. That, and after a decade it doesn’t seem to be it’s going anyplace anytime quickly.” — (male in his 20s, US)
“I selected optimistic as a result of I undoubtedly suppose it has leveled out now. To start with it was undoubtedly destructive (from what I heard). I feel it’s a brand new manner of investing.” — (Feminine in her 20s, US)
Why do individuals have destructive perceptions about cryptocurrencies?
Whereas the value of Bitcoin has elevated over 250% within the final yr, many individuals are nonetheless afraid of its excessive value volatility.
Moreover, after seeing many incidents similar to hacks and studies from mass media, many are involved in regards to the crypto’s safety dangers and utilization immediately. In Japan, the place the overwhelming majority of individuals have destructive perceptions about crypto, these safety issues have been paramount and deep-rooted into individuals’s perceptions.
“There was a digital foreign money incident within the information some time in the past.” — (male in his 40s, Japan)
“There’s a risk of somebody stealing it” — (male in his 30s, Japan)
Lastly, as with every new expertise, there’s a large studying curve.
“I don’t know sufficient about it to have a optimistic opinion” — (feminine in her 30s, US)
Many individuals don’t perceive cryptocurrencies nicely sufficient in an effort to make a correct judgment about them, which in the end impacts their notion. As individuals study extra about cryptocurrencies, we will anticipate this to alter sooner or later.
Which funding property do individuals suppose might be most tasty in 2021?
54% of respondents suppose shares might be a gorgeous funding in 2021, making it the hottest asset within the US.
Crypto was two instances extra in style than Gold and in addition the 4th hottest asset, as 30% of People consider it is going to be an engaging funding alternative. In Japan, crypto was the fifth hottest asset, as individuals favored different funding automobiles similar to Mutual Funds and FX.
Diving deeper into the totally different segments, we noticed that for buyers within the US with the highest degree of expertise crypto was the third hottest asset. This group highlighted the excessive progress that cryptocurrencies have skilled recently and consider it is going to be one of the worthwhile investments.
“ETFs are straightforward and low value foundation, actual property will at all times produce earnings and bitcoin is gaining steam and can proceed to in 2021” — (male in his 40s with greater than 10 years of funding expertise, US)
However, crypto was the second hottest asset amongst the least skilled buyers. Crypto’s run-up in value and growing adoption spiked the curiosity of this group, which wish to capitalize on the most recent tendencies available in the market.
A big share of People wish to make investments this yr, as they view it as one of many only methods to extend their wealth. The other was true in Japan, the place buyers have a extra conservative stance.
Furthermore, the adoption of cryptocurrencies within the US has grown considerably over the past yr, as we’ve seen an growing variety of American firms allocating capital into this new asset class and increasing their companies to cowl this revolutionary expertise. The market sentiment is at the moment very optimistic, particularly when in comparison with the Japanese market.
The outlook for cryptocurrencies this yr appears very promising within the US because it continues rising in reputation, particularly with the brand new era of buyers which favored the asset greater than anybody else. This is also a superb signal for Europe as schooling about cryptocurrency and the desire to diversify funding portfolios is at all times growing.
Regardless of the bearish sentiment in Japan, it stays as one of the vital markets on this planet and with one of the structured regulatory frameworks globally.
Since 2014, our mission as a world firm has been to supply the only and most safe solution to entry cryptocurrencies around the globe. We plan to proceed specializing in providing the best degree of safety to our prospects and new merchandise to offer extra worth.
- Survey interval: January 5, 2021-January 11, 2021
- Goal group: A complete of three,000 customers (20-59 years outdated) residing within the US and Japanese markets. Japan n = 2,000, USA n = 1,000
- The info of every market adjusts the composition of gender and age based mostly on the census outcomes in order that the tendencies of customers within the surveyed international locations are appropriately mirrored.
- Survey technique: WEB questionnaire survey
* When utilizing the survey outcomes of this launch, please specify [Survey by bitFlyer USA.].