There is no denying that public interest in cryptocurrencies has exploded in the past year, buoyed by pandemic-induced lockdowns and governments sending stimulus checks to relieve people from the economic downturn.
Following new all-time highs this year, a new survey conducted by CNBC identified the core reasons why people choose to invest in cryptocurrencies. The funding revealed that up to 35% of respondents put their money into the crypto market because they find it “exciting.”
Apparently, the thrill of watching their money go up quickly, drop in the same fashion, and then shoot up almost immediately is keeping investors on their feet. A further 26% said crypto investing “feels like a game,” while 31% of people are in it because of the potential for “short-term growth.”
Another good find from the survey is that many people invest in cryptocurrencies because of how easy it is to do so. Unlike other investment assets that require lengthy processes, anyone can easily make an account on Coinbase or Robinhood and start investing within a few minutes. 43% of respondents cited this ease of getting involved as a reason why they’re attracted to the asset class.
A further 23% of respondents invest because social media personalities promote it and 20% because family and friends talk to them about it. Only 18% of people are investing in cryptocurrencies because of their potential for long-term stable growth.
But there is more. Cryptocurrencies ranked fourth in the list of most popular investment options among respondents, coming behind real estate, stocks, mutual funds, and bonds.
Worth noting is that the entire market cap of cryptocurrencies still hovers around $2 trillion and represents a tiny fraction compared to other established financial markets. Apparently, this means there is room for more growth as more of the global population get onboarded to the crypto market.
Earlier this week, the leading cryptocurrency, Bitcoin, hit the $50k mark for the first time in three months but has retraced to around $48k at the time of writing.