The Crypto market is growing, with new cryptocurrencies sprouting daily. More and more people are also investing to increase their investments. Some of the factors that drive people to invest include FOMO (Fear of Missing Out), decentralization and easy access, among other reasons. Today, we will focus on why people hold their Bitcoin and the benefits and risks of holding Crypto.
The Bakkt Survey
Bakkt Holdings LLC is a financial services company that focuses on virtual currency specializing in rewards, concurrency, and loyalty points. Adam White, Kelly L, and Mike Blandina founded the company in 2018.
Bakkt carried out a survey recently giving insight on the adoption of BTC in America. The findings of the survey showed that most people invest in Crypto and Bitcoin for long-term benefits.
The survey, conducted virtually in June this year, questioned about two thousand users across the US. The team focused on trends and tried to see where BTC would be in a few months to come.
Bakkt used the ACS
The Findings
48% of the consumers that took part in the survey have invested in Crypto in the past six months. In addition to this, 19% of these consumers have invested under one hundred dollars, while 5% have put in more than a thousand dollars.
The majority (69%) of Crypto investors are young. Only 14% of people above 60 years showed interest in Cryptocurrency investments.
People use Bitcoin for various investments, including;
- Long-term returns after value accumulation
- Online Transactions
- Transfers to friends and family
- Purchasing goods and services
The study showed that most of these consumers (35 % of age between 18-29 and 36% between 30-44) purchased Crypto for Long-term returns and value accumulation.
Why Hold Bitcoin for the Long-term?
According to experts, Bitcoin prices will expectantly reach above the 77000 dollar mark by the end of 2024.
Apparently, the main reason consumers hold is to profit from value appreciation.
Safety reasons. Holding also prevents users from getting exposed to the short-term volatile effects. Therefore, users avoid selling at low prices after buying high.
Is Holding Bitcoin Risky?
Holding comes with its disadvantages. The high volatile nature of Crypto is the first con. Without enough funds, investors might panic sell their Crypto tokens or face liquidity issues.
Furthermore, the unpredictable future of Cryptocurrencies is a significant problem. Some governments have not adequately established Crypto policies, with others like China banning them entirely.
Fraud is a potential threat because of the decentralized nature of Crypto.
What is Cryptocurrency?
Cryptocurrency, a.k.a Crypto, is binary data created to be an exchange medium for buying goods and services using an online ledger. Some examples of cryptocurrencies include; Bitcoin, Ethereum, Dogecoin, Binance, Cardano, and Ripple.
Crypto works using the blockchain technology spread across multiple nodes managing record transactions.
Conclusion
In summary, many users hold Crypto because of the Long-term benefits. Additionally, holding Crypto has benefits such as profits from value appreciation and safety features. It is also risky because of high volatility and fraud due to its decentralized nature.
Stay with us for more Crypto-related news updates.