HomeCryptocurrencyThe State of Investing & Crypto in several markets

The State of Investing & Crypto in several markets

2020 was a yr of super development within the cryptocurrency business. 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 knowledge from 2020 to 2018, we’ve got seen a rise in accounts opened by customers of their 20s within the first half of 2020 at group degree.

As a world cryptocurrency change that has places of work, 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 contributors aged 20-59 throughout Japan and the US.

Key findings from our analysis:

  • Two-thirds of individuals within the US mentioned they’re thinking about investing extra in monetary belongings in 2021.
  • 30% of Individuals assume Bitcoin/Cryptocurrencies can be a gorgeous funding this yr, making it two occasions extra standard 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 constructive notion about cryptocurrencies as an funding. In Japan, 78% of the respondents have a destructive notion, exhibiting a reasonably robust distinction between the 2 areas.
  • Our analysis exhibits that the present market sentiment amongst American traders is very bullish in comparison with the Japanese, reinforcing the argument that the final run-up in worth was primarily pushed by US traders.

The State of Investing

Our analysis exhibits that 82% of individuals within the US spend money on monetary belongings, with nearly a 3rd of the inhabitants allocating over 1 / 4 of their web price into investments. Then again, in Japan, 69% of individuals don’t spend money on monetary belongings, exhibiting a major distinction throughout the 2 areas.

In each the US and Japan, males have a tendency to speculate greater than ladies, whereas additionally allocating the next share of their web price into their investments.

There may be additionally a major distinction within the outlook for investing this yr. 68% of respondents within the US are planning to speculate or proceed investing, whereas that determine is solely 18% in Japan.

Why are folks investing in 2021?

Throughout the globe, one of the standard causes folks wish to make investments this yr is to put together for the long run and enhance their long-term web price. A big share of respondents wish to diversify their earnings by way of investments and consider that investing is the strongest and quickest approach to develop their capital.

“In an effort to construct your wealth, it would be best to make investments your cash. Investing means that you can put your cash in autos which have the potential to earn robust charges of return. In case you do not make investments, you might be lacking out on alternatives to extend your monetary price.” — (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.

“It is a nice time to speculate, hopefully issues can solely get higher and go up.” (feminine in her 30s, US)

Low rates of interest are additionally fueling folks’s motivation to allocate their wealth into funding belongings. We are able to see an analogous development in Japan.

“Curiosity is simply too low for deposits and financial savings. I feel it’s higher to handle your capital with some danger” — (male in his 40s, Japan).

Why are folks not trying to spend money on monetary belongings?

There’s an attention-grabbing distinction in why individuals are not trying to make investments throughout the 2 areas. One of the vital standard explanation why folks within the US are usually not planning to speculate this yr is due to monetary challenges created by the COVID-19 disaster.

“I’ve no job at the moment, so no earnings. Cannot make investments what you do not have” — (male in his 30s, US)

“Cash may be very tight because of the pandemic” — (feminine in her 30s, US)

Our knowledge exhibits that, logically, folks with decrease incomes are 40% much less more likely to make investments. This, amidst the latest surge in COVID-19 circumstances and modifications in energy within the US, has elevated folks’s uncertainty and worry of what’s going to occur subsequent on the macroeconomic degree.

What’s most attention-grabbing, nevertheless, is that the predominant purpose why Individuals 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 assets. In Japan, it’s a special story.

Whereas the financial influence from the COVID-19 disaster additionally impacted many individuals’s capacity to spend money on Japan, nearly all of those that mentioned that they don’t seem to be trying to make investments highlighted the potential dangers related to investing, moderately than a scarcity of assets to take action.

“I do not need to lose even 0.0001% of my cash. I do not need 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 positively do it” (male in his 40s in Japan)

“I feel funding is identical as playing. I do not need to do harmful issues like shedding cash.” (Male in his 30s in Japan)

“I do not know easy methods to do it, and it appears that there’s a excessive danger 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 folks within the US being much more open to investing and having a much bigger want to diversify their earnings by way of investing. In Japan folks are inclined 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 occasions larger than Japan.

Equally with investing, the sentiment in the direction of cryptocurrencies is so much stronger within the US than it’s in Japan. 76% of the respondents within the US who’ve heard about cryptocurrencies have a constructive notion about cryptocurrencies as an funding, whereas in Japan it was the exact opposite.

What’s driving folks’s constructive notion about cryptocurrencies?

Individuals like cryptocurrencies within the US and Japan for very related causes. One of the vital standard ones is the rising recognition of cryptocurrencies and its outstanding rise in worth, which makes it a really engaging funding.

“Cryptos are rising at a quick fee and I really feel they may continue to grow and be very worthwhile” (male in his 20s, US)

“I noticed within the information that the worth has elevated just lately” (male in his 20s in Japan)

But it surely’s not solely its run-up in worth that’s getting folks’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 corporations. You should buy/promote 24/7. Some have mounted amount versus shares that may all the time situation new shares and many others” (male in his 50s, US)

“Cryptocurrency appears to be gaining momentum with the fallout of world and nationwide forex programs.” (feminine in her 20s, US)

Furthermore, in 2020 we noticed a wave of establishments coming into the cryptocurrency area, and folks within the US observed. Institutional participation solidified folks’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 wherever anytime quickly.” (male in his 20s, US)

“I selected constructive as a result of I positively assume it has leveled out now. To start with it was positively destructive (from what I heard). I feel it’s a brand new approach of investing.” (Feminine in her 20s, US)

Why do folks 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 worth volatility.

Moreover, after seeing many incidents reminiscent of hacks and stories from mass media, many are involved in regards to the crypto’s safety dangers and utilization right this moment. In Japan, the place the overwhelming majority of individuals have destructive perceptions about crypto, these safety issues had been paramount and deep-rooted into folks’s perceptions.

“There was a digital forex 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 all new know-how, there’s a large studying curve.

“I don’t know sufficient about it to have a constructive opinion” — (feminine in her 30s, US)

Many individuals don’t perceive cryptocurrencies effectively sufficient with the intention to make a correct judgment about them, which finally impacts their notion. As folks study extra about cryptocurrencies, we will count on this to alter sooner or later.

Which funding belongings do folks assume can be most tasty in 2021?

54% of respondents assume shares can be a gorgeous funding in 2021, making it the hottest asset within the US.

Crypto was two occasions extra standard than Gold and in addition the 4th hottest asset, as 30% of Individuals consider it is going to be an engaging funding alternative. In Japan, crypto was the fifth hottest asset, as folks favored different funding autos reminiscent of Mutual Funds and FX.

Diving deeper into the totally different segments, we noticed that for traders within the US with the highest degree of expertise crypto was the third hottest asset. This group highlighted the excessive development that cryptocurrencies have skilled these days and consider it is going to be one of the worthwhile investments.

“ETFs are simple and low price foundation, actual property will all the time produce income and bitcoin is gaining steam and can proceed to in 2021” — (male in his 40s with greater than 10 years of funding expertise, US)

Then again, crypto was the second hottest asset amongst the least skilled traders. Crypto’s run-up in worth and rising adoption spiked the curiosity of this group, which wish to capitalize on the newest developments available in the market.

Wrapping up

A major share of Individuals wish to make investments this yr, as they view it as one of many only methods to extend their wealth. The alternative was true in Japan, the place traders 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 rising variety of American corporations allocating capital into this new asset class and increasing their providers to cowl this revolutionary know-how. The market sentiment is at the moment very constructive, particularly when in comparison with the Japanese market.

The outlook for cryptocurrencies this yr seems to be very promising within the US because it continues rising in recognition, particularly with the brand new era of traders which favored the asset greater than anybody else. This is also signal for Europe as schooling about cryptocurrency and the desire to diversify funding portfolios is all the time rising.

Regardless of the bearish sentiment in Japan, it stays as one of the essential markets on the planet and with one of the structured regulatory frameworks globally.

Since 2014, our mission as a world firm has been to supply the best and most safe technique 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 supply extra worth.

Survey methodology

  • 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 primarily based on the census outcomes in order that the developments of customers within the surveyed international locations are appropriately mirrored.
  • Survey methodology: WEB questionnaire survey

* When utilizing the survey outcomes of this launch, please specify [Survey by bitFlyer USA.].



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