2020 was a 12 months of large progress within the cryptocurrency trade. We noticed Bitcoin attain new highs, as famend monetary establishments invested on this revolutionary asset class and enthusiasm throughout the market bounced again.
Final 12 months, bitFlyer Europe carried out the survey in European nations 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, nonetheless the bulk are nonetheless unsure how they are going to be used.
In September 2020, when evaluating our information from 2020 to 2018, we now have seen a rise in accounts opened by customers of their 20s within the first half of 2020 at group stage.
As a world cryptocurrency change that has workplaces, 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 individuals aged 20-59 throughout Japan and the US.
Key findings from our analysis:
- Two-thirds of individuals within the US mentioned they’re fascinated by investing extra in monetary property in 2021.
- 30% of Individuals suppose Bitcoin/Cryptocurrencies will likely be a beautiful funding this 12 months, making it two instances extra fashionable than Gold and the 4th most chosen asset. The most well-liked 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 up to now.
- 76% of individuals within the US which have heard about crypto have a constructive notion about cryptocurrencies as an funding. In Japan, 78% of the respondents have a detrimental notion, exhibiting a fairly robust distinction between the 2 areas.
- Our analysis exhibits that the present market sentiment amongst American traders is very bullish in comparison with the Japanese, reinforcing the argument that the final run-up in worth was primarily pushed by US traders.
The State of Investing
Our analysis exhibits that 82% of individuals within the US spend money on monetary property, with nearly a 3rd of the inhabitants allocating over 1 / 4 of their internet price into investments. Alternatively, in Japan, 69% of individuals don’t spend money on monetary property, exhibiting a big distinction throughout the 2 areas.
In each the US and Japan, males have a tendency to speculate greater than ladies, whereas additionally allocating a better share of their internet price into their investments.
There’s additionally a big distinction within the outlook for investing this 12 months. 68% of respondents within the US are planning to speculate or proceed investing, whereas that determine is solely 18% in Japan.
Why are folks investing in 2021?
Throughout the globe, probably the most fashionable causes folks wish to make investments this 12 months is to put together for the long run and improve their long-term internet price. A big share of respondents wish to diversify their revenue by means of investments and imagine that investing is the strongest and quickest means to develop their capital.
“With a view 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 price.” — (male in his 30s, US)
After final 12 months’s occasions, extra persons are taking note of the market in hopes of capitalizing on a potential financial rebound this 12 months.
“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 folks’s motivation to allocate their wealth into funding property. We are able to see an analogous pattern in Japan.
“Curiosity is just too low for deposits and financial savings. I feel it’s higher to handle your capital with some threat” — (male in his 40s, Japan).
Why are folks not trying to spend money on monetary property?
There’s an attention-grabbing distinction in why persons are not trying to make investments throughout the 2 areas. One of the fashionable the reason why folks within the US usually are not planning to speculate this 12 months 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 may be very tight because of the pandemic” — (feminine in her 30s, US)
Our information exhibits that, logically, folks with decrease incomes are 40% much less prone to make investments. This, amidst the latest surge in COVID-19 instances and modifications in energy within the US, has elevated folks’s uncertainty and concern of what’s going to occur subsequent on the macroeconomic stage.
What’s most attention-grabbing, nonetheless, is that the predominant purpose 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 sources. In Japan, it’s a distinct story.
Whereas the financial affect from the COVID-19 disaster additionally impacted many individuals’s means to spend money on 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, fairly than a scarcity of sources to take action.
“I do not need to lose even 0.0001% of my cash. I do not need to spend money on something that has the chance of shedding even a small amount of cash. Nevertheless, if there’s a no-risk, high-return funding, I’ll undoubtedly do it” — (male in his 40s in Japan)
“I feel funding is identical 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 threat of loss.” — (feminine in her 30s in Japan)
There’s a transparent distinction within the sentiment in the direction of investing between the 2 areas. We see folks within the US being much more open to investing and having an even bigger need to diversify their revenue by means of investing. In Japan folks are likely to have a way more cautious stance.
The State of Crypto
Cryptocurrency adoption is greater within the US than it’s in Japan. Within the US, 22% of respondents have invested in crypto sooner or later – over 4 instances greater than Japan.
Equally with investing, the sentiment in the direction of cryptocurrencies is rather a lot stronger within the US than it’s in Japan. 76% of the respondents within the US who’ve heard about cryptocurrencies have a constructive notion about cryptocurrencies as an funding, whereas in Japan it was the exact opposite.
What’s driving folks’s constructive notion about cryptocurrencies?
Individuals like cryptocurrencies within the US and Japan for very comparable causes. One of the fashionable ones is the rising recognition of cryptocurrencies and its outstanding rise in worth, which makes it a really enticing funding.
“Cryptos are rising at a quick fee and I really feel they may 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 folks’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 purchase/promote 24/7. Some have mounted amount versus shares that may at all times situation new shares and many others” — (male in his 50s, US)
“Cryptocurrency appears to be gaining momentum with the fallout of world and nationwide foreign money techniques.” — (feminine in her 20s, US)
Furthermore, in 2020 we noticed a wave of establishments coming into the cryptocurrency area, and folks within the US seen. Institutional participation solidified folks’s long-term outlook for crypto, and even their notion of it.
“Giant establishments have been beginning to purchase crypto, which may 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 constructive as a result of I undoubtedly suppose it has leveled out now. At first it was undoubtedly detrimental (from what I heard). I feel it’s a brand new means of investing.” — (Feminine in her 20s, US)
Why do folks have detrimental perceptions about cryptocurrencies?
Whereas the worth of Bitcoin has elevated over 250% within the final 12 months, many individuals are nonetheless afraid of its excessive worth volatility.
Moreover, after seeing many incidents comparable to hacks and studies from mass media, many are involved concerning the crypto’s safety dangers and utilization right this moment. In Japan, the place the overwhelming majority of individuals have detrimental perceptions about crypto, these safety issues have been paramount and deep-rooted into folks’s perceptions.
“There was a digital foreign money incident within the information some time in the past.” — (male in his 40s, Japan)
“There’s a risk of somebody stealing it” — (male in his 30s, Japan)
Lastly, as with all new know-how, there’s a huge studying curve.
“I don’t know sufficient about it to have a constructive opinion” — (feminine in her 30s, US)
Many individuals don’t perceive cryptocurrencies nicely sufficient to be able to make a correct judgment about them, which finally impacts their notion. As folks be taught extra about cryptocurrencies, we will count on this to alter sooner or later.
Which funding property do folks suppose will likely be most engaging in 2021?
54% of respondents suppose shares will likely be a beautiful funding in 2021, making it the hottest asset within the US.
Crypto was two instances extra fashionable than Gold and likewise the 4th hottest asset, as 30% of Individuals imagine will probably be an enticing funding alternative. In Japan, crypto was the fifth hottest asset, as folks favored different funding automobiles comparable to Mutual Funds and FX.
Diving deeper into the totally different segments, we noticed that for traders within the US with the highest stage of expertise crypto was the third hottest asset. This group highlighted the excessive progress that cryptocurrencies have skilled currently and imagine will probably be probably the most worthwhile investments.
“ETFs are straightforward and low price foundation, actual property will at all times 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)
Alternatively, crypto was the second hottest asset amongst the least skilled traders. Crypto’s run-up in worth and rising 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 12 months, as they view it as one of many best methods to extend their wealth. The other was true in Japan, the place traders have a extra conservative stance.
Furthermore, the adoption of cryptocurrencies within the US has grown considerably during the last 12 months, as we’ve seen an rising variety of American corporations allocating capital into this new asset class and increasing their companies to cowl this revolutionary know-how. The market sentiment is at present very constructive, particularly when in comparison with the Japanese market.
The outlook for cryptocurrencies this 12 months seems to be very promising within the US because it continues rising in recognition, particularly with the brand new era of traders which favored the asset greater than anybody else. This may be a very good signal for Europe as schooling about cryptocurrency and the need to diversify funding portfolios is at all times rising.
Regardless of the bearish sentiment in Japan, it stays as probably the most necessary markets on the planet and with probably the most structured regulatory frameworks globally.
Since 2014, our mission as a worldwide firm has been to supply the best and most safe method to entry cryptocurrencies world wide. We plan to proceed specializing in providing the very best stage of safety to our clients and new merchandise to offer extra worth.
Survey methodology
- Survey interval: January 5, 2021-January 11, 2021
- Goal group: A complete of three,000 shoppers (20-59 years outdated) residing within the US and Japanese markets. Japan n = 2,000, USA n = 1,000
- The information of every market adjusts the composition of gender and age primarily based on the census outcomes in order that the tendencies of shoppers within the surveyed nations are appropriately mirrored.
- Survey technique: WEB questionnaire survey
* When utilizing the survey outcomes of this launch, please specify [Survey by bitFlyer USA.].
