2020 was a 12 months of great progress 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 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 knowledge from 2020 to 2018, we have now seen a rise in accounts opened by customers of their 20s within the first half of 2020 at group degree.
As a world cryptocurrency change 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 large and fascinating 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 enthusiastic about investing extra in monetary belongings in 2021.
- 30% of Individuals assume Bitcoin/Cryptocurrencies will likely be a gorgeous 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 the moment utilizing or have used cryptocurrencies prior 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 adverse notion, displaying a fairly robust distinction between the 2 areas.
- Our analysis exhibits 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 exhibits 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 web price into investments. Then again, in Japan, 69% of individuals don’t put money into monetary belongings, displaying a major distinction throughout the 2 areas.
In each the US and Japan, males have a tendency to take a position greater than girls, whereas additionally allocating a better share of their web price into their investments.
There may be additionally a major distinction within the outlook for investing this 12 months. 68% of respondents within the US are planning to take a position or proceed investing, whereas that determine is solely 18% in Japan.
Why are individuals investing in 2021?
Throughout the globe, one of the fashionable causes individuals wish to make investments this 12 months is to put together for the long run and improve their long-term web price. A big share of respondents wish to diversify their earnings by investments and imagine that investing is the strongest and quickest method to develop their capital.
“As a way to construct your wealth, it would be best to make investments your cash. Investing permits you to put your cash in automobiles which have the potential to earn robust charges of return. If you happen to do not make investments, you’re lacking out on alternatives to extend your monetary price.” — (male in his 30s, US)
After final 12 months’s occasions, extra persons are listening to the market in hopes of capitalizing on a potential financial rebound this 12 months.
“It is a nice time to take a position, 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 identical development 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 individuals not seeking to put money into monetary belongings?
There’s an fascinating distinction in why persons are not seeking to make investments throughout the 2 areas. One of the crucial fashionable the explanation why individuals within the US will not be planning to take a position this 12 months is due to monetary challenges created by the COVID-19 disaster.
“I’ve no job at the moment, so no earnings. Cannot make investments what you do not have” — (male in his 30s, US)
“Cash could be very tight because of the pandemic” — (feminine in her 30s, US)
Our knowledge exhibits that, logically, individuals with decrease incomes are 40% much less prone to make investments. This, amidst the latest surge in COVID-19 circumstances and adjustments in energy within the US, has elevated individuals’s uncertainty and worry of what’s going to occur subsequent on the macroeconomic degree.
What’s most fascinating, nonetheless, is that the major motive why Individuals don’t make investments isn’t due to the dangers of dropping cash. They primarily don’t do it as a result of they don’t have the required sources. In Japan, it’s a special story.
Whereas the financial affect from the COVID-19 disaster additionally impacted many individuals’s capacity to put money into Japan, the vast majority of those that mentioned that they aren’t seeking to make investments highlighted the potential dangers related to investing, somewhat than an absence of sources 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 dropping even a small sum of money. Nonetheless, if there’s a no-risk, high-return funding, I’ll undoubtedly do it” — (male in his 40s in Japan)
“I feel funding is similar as playing. I do not need to do harmful issues like dropping cash.” — (Male in his 30s in Japan)
“I do not know easy methods to 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 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 earnings by investing. In Japan individuals are likely to have a way more cautious stance.
The State of Crypto
Cryptocurrency adoption is increased 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 instances increased than Japan.
Equally with investing, the sentiment in direction of cryptocurrencies is lots 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 individuals’s constructive notion about cryptocurrencies?
Individuals like cryptocurrencies within the US and Japan for very comparable causes. One of the crucial fashionable ones is the rising reputation of cryptocurrencies and its outstanding rise in worth, which makes it a really engaging funding.
“Cryptos are rising at a quick fee 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 not too long ago” — (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 large Wall road companies. You should purchase/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 foreign money techniques.” — (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.
“Massive establishments have been beginning to purchase crypto, which may drive up shortage and subsequently 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 assume it has leveled out now. At first it was undoubtedly adverse (from what I heard). I feel it’s a brand new method of investing.” — (Feminine in her 20s, US)
Why do individuals have adverse 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 akin to hacks and experiences from mass media, many are involved concerning the crypto’s safety dangers and utilization at the moment. In Japan, the place the overwhelming majority of individuals have adverse perceptions about crypto, these safety considerations had been paramount and deep-rooted into individuals’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 chance of somebody stealing it” — (male in his 30s, Japan)
Lastly, as with all new know-how, there’s a large 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 effectively sufficient with the intention to make a correct judgment about them, which in the end impacts their notion. As individuals be taught extra about cryptocurrencies, we are able to count on this to alter sooner or later.
Which funding belongings do individuals assume will likely be most engaging in 2021?
54% of respondents assume shares will likely be a gorgeous 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 engaging funding alternative. In Japan, crypto was the fifth hottest asset, as individuals favored different funding automobiles akin 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 progress that cryptocurrencies have skilled these days and imagine will probably be one of the worthwhile investments.
“ETFs are simple and low price foundation, actual property will all the time produce earnings and bitcoin is gaining steam and can proceed to in 2021” — (male in his 40s with greater than 10 years of funding expertise, US)
Then again, crypto was the second hottest asset amongst the least skilled buyers. Crypto’s run-up in worth and rising adoption spiked the curiosity of this group, which wish to capitalize on the most recent tendencies out there.
Wrapping up
A big share of Individuals wish to make investments this 12 months, as they view it as one of many handiest methods to extend their wealth. The other 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 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 the moment very constructive, particularly when in comparison with the Japanese market.
The outlook for cryptocurrencies this 12 months seems 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 an excellent signal for Europe as training about cryptocurrency and the desire to diversify funding portfolios is all the time rising.
Regardless of the bearish sentiment in Japan, it stays as one of the essential markets on this planet and with one of the structured regulatory frameworks globally.
Since 2014, our mission as a world firm has been to supply the best and most safe solution to entry cryptocurrencies all over the world. We plan to proceed specializing in providing the best degree of safety to our clients and new merchandise to supply extra worth.
Survey methodology
- Survey interval: January 5, 2021-January 11, 2021
- Goal group: A complete of three,000 shoppers (20-59 years previous) 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 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.].
