According to a Parliament Street survey, almost one in three UK investors would not invest in Bitcoin. The respondents surveyed believe that «the train is already gone» and the digital asset industry will not be able to demonstrate the same impressive returns as before.
The survey involved 2,000 UK consumers who shared their investment plans amid the current economic turmoil amid the COVID-19 spread.
To begin with, we note that such sentiments do not reflect the situation in the cryptocurrency industry. The fact is that in the near future, US residents will begin to receive financial assistance from the government – as it was in April 2020. According to analysts, this will benefit the coin industry. First, part of the printed dollars will go to buy coins anyway, because people have already heard about the growth of BTC eleven times over the past year. Secondly, the issue of ordinary currency in any case will make it less valuable, which will also affect the value of other assets.
The stimulus package will amount to $ 1.9 trillion. It is noteworthy that this is more than the entire market capitalization of the cryptocurrency industry, that is, the product of coin rates by their number.
We checked the latest data: today the indicator is at the level of 1.75 trillion dollars, 1.05 trillion of which is in Bitcoin. This means that the economy will receive more funds than all the cryptocurrencies in the world are worth .
All time cryptocurrency market capitalization chart
What will happen to Bitcoin?
More than a third of respondents said they expect the price of BTC to rise further this year to $ 70,000, and 18 percent predicted a flight to at least $ 130,000 in the next few months. About 29 percent of those surveyed said they would never have considered investing in cryptocurrency until the recent growth phase, which was supported by major organizations such as PayPal, MicroStrategy and Tesla.
That is, the investment of large companies in Bitcoin helped investors to look at Bitcoin and other cryptocurrencies with an unbiased look, as well as discern the prospects for blockchain assets. For example, BTC has a maximum supply of 21 million coins, in addition, the rate of release of the cryptocurrency halves every 210 thousand blocks, or approximately once every four years. The best part is that no government in the world is able to accelerate the emission of coins or increase the maximum number of bitcoins. This means that cryptocurrencies are essentially an independent asset class – at least against the background of competitors.
Almost a quarter of respondents noted Elon Musk’s support for the crypto market and said it gave them more confidence in the future of digital assets, Decrypt reports. We will remind, earlier, Telsa acquired BTC in the amount of $ 1.5 billion, as a result of which the cryptocurrency rate increased from $ 39,244 to $ 43,233 in just 20 minutes. In addition, Tesla representatives promised to introduce payment for cars with bitcoins, which also positively affected the perception of BTC.
But traditional assets such as stocks and bonds were also considered “too risky” in the current economic environment by 37 percent of investors surveyed. However, 52 percent said they were still more likely to invest in traditional assets – that is, gold or stocks – rather than cryptocurrency.
As a reminder, the picture of sentiment differs markedly among investors who have already invested their money in BTC. In another survey of 100 asset managers and institutional investors by London-based crypto fund Nickel Digital Asset Management, 85 percent of respondents who already own bitcoins plan to increase their investment in digital assets over the next two years.
In this case, the owners of cryptocurrencies have already managed to assess their advantages and compare them with the classical money of states, after which they made the appropriate conclusions. Therefore, they have no doubts about the prospects of the same Bitcoin.
Feeling a «missed opportunity» is normal in the cryptocurrency industry. It only proves once again how crazy growth can produce coins. That is, in fact, the fear of investors confirms their unpreparedness for such large-scale jumps in value.
At the same time, analysts agree that the industry is still far from the ceiling for growth. We believe that US government payments will indeed play an important role in the development of the cryptocurrency and blockchain industry.
