Investors Keen On Cryptocurrency Despite Market Volatility

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Despite the rollercoaster ride for cryptocurrency so far in 2018, investors want to increase their holdings within the next 12 months.

A study reveals that 59% of investors and 72% of consumers will up their stakes.

Most (60%) expect cryptocurrency values to increase by the end of the year, but are less optimistic about this than earlier in the year.

The SharesPost survey was also carried out before this week’s calamitous collapse in cryptocurrency values.

Unsurprisingly, the 2,400 respondents to the survey picked Bitcoin as their most popular cryptocurrency to own, followed by Ethereum, Ripple XRP and Litecoin.

Mainstream delay expected by investors

The three currencies are expected to offer the best potential for investment growth, they said.

But the number expecting cryptocurrency to go mainstream by 2020 has fallen from 51% to 27% in six months. Most consider 2025 offers a better timescale.

The main concerns of investors related to market volatility and security of their investments.

The survey also looked at the uptake of blockchain technology.

A third of investors and 49% of consumers signalled their employers were ready to roll out blockchain projects.

“Despite the 60% decline in cryptocurrency valuations this year, consumers and investors continue to offer a bullish, long term outlook for crypto and Blockchain. However, investors have become less optimistic about near-term cryptocurrency trends while consumers’ positive outlook remains largely unchanged since the beginning of the year,” says the report

Money transfer target

“Bitcoin saw a significant jump in investor interest. Positive investor sentiment for Bitcoin grew to 68 percent from 48 percent. XRP remains investors’ preferred choice over Litecoin and Bitcoin Cash.

“Both investors and consumers are bullish about Blockchain disrupting money transfer, payments, and asset management sectors. Over 58% of investors and 55% of consumers think blockchain will first strike the money transfer market.”

The top challenge for cryptocurrencies was a lack of understanding from potential users, while not enough real-life case studies were available to illustrate how cryptocurrencies work.

The survey also looked at popular exchanges and found Coinbase was the most used, followed by Kraken, Bitrex, Poloneix and Bitstamp.

Read the report

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