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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 carried out 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 seen a rise in accounts opened by customers of their 20s within the first half of 2020 at group degree.
As a international cryptocurrency alternate 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 huge 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 curious about investing extra in monetary belongings in 2021.
- 30% of Individuals assume Bitcoin/Cryptocurrencies can be a sexy funding this yr, making it two occasions extra common than Gold and the 4th most chosen asset. The preferred asset was shares at 54%.
- 82% of the US inhabitants has heard about cryptocurrencies.
- Roughly 20% of respondents within the US are at present 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 reasonably 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 worth was primarily pushed by US buyers.
The State of Investing
Our analysis reveals that 82% of individuals within the US put money into monetary belongings, with nearly a 3rd of the inhabitants allocating over 1 / 4 of their internet value into investments. However, in Japan, 69% of individuals don’t put money into monetary belongings, displaying a big distinction throughout the 2 areas.
In each the US and Japan, males have a tendency to speculate greater than girls, whereas additionally allocating the next share of their internet value into their investments.
There may be additionally a big 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 individuals investing in 2021?
Throughout the globe, one of the common causes individuals wish to make investments this yr is to put together for the longer term and enhance their long-term internet value. A big share of respondents wish to diversify their revenue by investments and imagine that investing is the strongest and quickest means to develop their capital.
“In an effort to construct your wealth, you’ll want to make investments your cash. Investing means that you can put your cash in automobiles which have the potential to earn robust charges of return. When you 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 persons are listening 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 individuals’s motivation to allocate their wealth into funding belongings. We are able to see an analogous pattern in Japan.
“Curiosity is simply too low for deposits and financial savings. I believe it’s higher to handle your capital with some danger” — (male in his 40s, Japan).
Why are individuals not trying to put money into monetary belongings?
There’s an attention-grabbing distinction in why persons are not trying to make investments throughout the 2 areas. One of the vital common the explanation why individuals within the US will not be planning to speculate this yr is due to monetary challenges created by the COVID-19 disaster.
“I’ve no job at present, so no revenue. Cannot make investments what you do not have” — (male in his 30s, US)
“Cash could be very tight as a result of pandemic” — (feminine in her 30s, US)
Our knowledge reveals that, logically, individuals 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 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 fundamental motive 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 mandatory assets. In Japan, it’s a unique story.
Whereas the financial influence from the COVID-19 disaster additionally impacted many individuals’s means to put money into 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, somewhat 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 put money into something that has the danger of shedding even a small amount of cash. Nonetheless, if there’s a no-risk, high-return funding, I’ll undoubtedly do it” — (male in his 40s in Japan)
“I believe funding is similar as playing. I do not need to do harmful issues like shedding cash.” — (Male in his 30s in Japan)
“I do not know 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 direction of investing between the 2 areas. We see individuals within the US being much more open to investing and having a much bigger need to diversify their revenue by investing. In Japan individuals 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 in some unspecified time in the future – over 4 occasions larger than Japan.
Equally with investing, the sentiment in 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 related causes. One of the vital common ones is the growing reputation of cryptocurrencies and its outstanding rise in worth, 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 just lately” — (male in his 20s in Japan)
Nevertheless it’s not solely its run-up in worth that’s getting individuals’s consideration. Many respondents highlighted crypto’s worth propositions and imagine in its long-term worth.
“I really feel [cryptocurrencies] put you in management versus huge Wall avenue companies. You should buy/promote 24/7. Some have fastened amount versus shares that may all the time difficulty 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 individuals within the US observed. Institutional participation solidified individuals’s long-term outlook for crypto, and even their notion of it.
“Giant establishments have been beginning to purchase crypto, which might 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 assume it has leveled out now. To start with it was undoubtedly destructive (from what I heard). I believe it’s a brand new means 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 worth volatility.
Moreover, after seeing many incidents corresponding to hacks and studies from mass media, many are involved concerning the crypto’s safety dangers and utilization immediately. In Japan, the place the overwhelming majority of individuals have destructive perceptions about crypto, these safety considerations had been paramount and deep-rooted into individuals’s perceptions.
“There was a digital forex incident within the information some time in the past.” — (male in his 40s, Japan)
“There’s a chance of somebody stealing it” — (male in his 30s, Japan)
Lastly, as with every new know-how, there’s a huge 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 properly sufficient so as to make a correct judgment about them, which in the end impacts their notion. As individuals be taught extra about cryptocurrencies, we will count on this to vary sooner or later.
Which funding belongings do individuals assume can be most tasty in 2021?
54% of respondents assume shares can be a sexy funding in 2021, making it the hottest asset within the US.
Crypto was two occasions extra common than Gold and in addition the 4th hottest asset, as 30% of Individuals imagine it will likely be an engaging funding alternative. In Japan, crypto was the fifth hottest asset, as individuals favored different funding automobiles corresponding 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 development that cryptocurrencies have skilled currently and imagine it will likely be one of the worthwhile investments.
“ETFs are simple and low value 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)
However, crypto was the second hottest asset amongst the least skilled buyers. Crypto’s run-up in worth and growing adoption spiked the curiosity of this group, which wish to capitalize on the newest tendencies 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 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 know-how. The market sentiment is at present very optimistic, particularly when in comparison with the Japanese market.
The outlook for cryptocurrencies this yr appears to be like very promising within the US because it continues rising in reputation, particularly with the brand new technology of buyers which favored the asset greater than anybody else. This may be signal for Europe as training about cryptocurrency and the need to diversify funding portfolios is all the time growing.
Regardless of the bearish sentiment in Japan, it stays as one of the necessary 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 only and most safe technique to entry cryptocurrencies world wide. We plan to proceed specializing in providing the very 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 tendencies 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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