50% of Americans Ditch Gold and Stocks for Bitcoin: Wise Move or Gamble?

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Many individuals familiar with cryptocurrencies commonly associate Bitcoin with digital gold because of its unique traits. Remarkably, a recent investigation indicates an increasing number of Americans are opting for Bitcoin over traditional gold.

In collaboration with Storible, the gaming-focused blockchain platform ChainPlay carried out a comprehensive survey, soliciting opinions from 1,428 American participants on the impact of cryptocurrencies and investment trends in their personal experiences.

Based on recent findings, approximately two-thirds of U.S. residents currently hold cryptocurrency. Moreover, around three-quarters of these individuals are contemplating expanding their crypto investments by 2025. Furthermore, about sixty percent of the crypto owners anticipate that the value of their assets will at least double over the next few years.

According to the study findings, approximately half of the cryptocurrency owners are baby boomers, with nearly 30% being millennials. The remaining group consists mostly of Generation Z. The authors of the report suggest that the demographic of crypto owners is becoming increasingly youthful. However, it’s unclear what specific age range or timeframe these numbers represent, as Gen X is completely absent from this report. This absence of Gen X participants in the study raises questions and has led some to label them as the “forgotten” or “lost” generation when it comes to cryptocurrency ownership.

It’s unclear from the report who the survey participants belonged to and what method was used to select them for ChainPlay and Storible to question.

Based on various reports, approximately 13% of U.S. residents were crypto owners by November 2024. The exact figure appears to be influenced significantly by the research methods used.

New crypto investment stats

The results of a study showed that Donald Trump’s winning the election significantly influenced people’s views on cryptocurrencies, as about one-third (38%) of those surveyed chose to invest in digital currencies after the election results were announced.

Approximately 84% of these individuals are first-timers in the cryptocurrency market, having been inspired to dive into digital fortunes following the election victory of a pro-cryptocurrency candidate.

Let’s delve deeper into the BTC investment findings from the report. Here are three key takeaways:

1. Strikingly, about half of Americans (51%) invest more than one-third (30%) of their assets in meme coins. This shows that the thriving market of meme tokens is no laughing matter.

Point two highlights that approximately 20% of U.S. residents are putting more than 30% of their investment into cryptocurrencies. Lastly, it’s worth mentioning that about 52% of the respondents confessed they were selling gold or stocks to purchase Bitcoin.

The final disclosure shows a significant change in public perception regarding Bitcoin. More than half of those surveyed now consider Bitcoin as a permanent fixture, viewing it as safer and potentially more lucrative compared to gold or stocks.

The idea of favoring Bitcoin over gold and stocks was relatively uncommon during the 2017 market surge. However, as multiple governments worldwide have declared plans to mine, hold, or utilize Bitcoin for international transactions, the perception towards Bitcoin has significantly shifted, making it less biased among many people.

Beyond that, these statistics indicate that not only did these individuals choose to purchase Bitcoin, but they also took an extra step by selling off their conventional investments to prioritize Bitcoin first. The survey reveals that approximately 51% of such individuals are based in America, demonstrating a remarkable level of enthusiasm for digital gold.

Bitcoin and gold

Bitcoin’s nickname as “digital gold” is fitting for several reasons. Like gold, Bitcoin is a scarce and deflationary asset – meaning there will never be more of it created in the future. The total supply of both gold and Bitcoin is fixed and not likely to increase. For instance, Bitcoin undergoes a process called halving every four years, which reduces the reward for mining new coins. Gold mining also decreases over time, but at a slower pace compared to the increasing scarcity of Bitcoin.

It’s been debated among experts if we’ve hit the “golden apex” in terms of gold mining (a point after which gold production will consistently decrease). Conversely, in the world of Bitcoin, its peak occurred during its early years, and since then, production has continually decreased, making Bitcoin rarer than gold. If gold mining were to dip by a few percent, Bitcoin could potentially drop by half.

To elaborate further, following the completion of each Bitcoin mining process, there’s a possibility that its value could skyrocket, similar to a rocket taking off (going to the moon). Meanwhile, gold miners might begin excavating gold not just on Earth, but even on the moon, thereby increasing the global supply. However, unlike gold which is increasingly hard to find due to its extensive use in technology, art, and other items, bitcoins are often irretrievably lost or locked. In fact, over the 16 years since Bitcoin was created, approximately 20% of all units have been classified as lost due to their high rate of being stuck or inaccessible.

🌐 MARK CUBAN: “Bitcoin – over the past 15 years or so, it’s been presented as a form of value storage, similar to gold, and it has reached a level of recognition and acceptance in the market.

— Cointelegraph (@Cointelegraph) January 4, 2025

In the opinion of entrepreneur and television host Mark Cuban, Bitcoin has evolved into a form of value storage and achieved a level of acceptance similar to gold. Notably, both Cuban and MicroStrategy’s CEO Michael Saylor emphasize that unlike gold, Bitcoin is simpler to transfer and generally easier to manage due to its digital nature.

In a thought experiment proposed by Saylor, consider the scenario where you attempt to bring a significant quantity of gold or cash on a plane. Airport officials would likely view you as a thief. Similarly, if you try to transfer a large sum of money overseas using a wire service, it would raise suspicion. However, according to Saylor, Bitcoin sets itself apart from traditional assets by providing its owners with the freedom and control over their funds.

Michael Saylor on Gold vs Fiat vs #Bitcoin

— Vivek⚡️ (@Vivek4real_) January 16, 2025

In a different scenario, Saylor mentioned that the golden age concluded in the 16th century when other forms of payment gained preference. Contrastingly, Cuban’s assessment, where he positions Bitcoin alongside gold, appears less extreme given that people continue to invest in gold. Yet, it is Bitcoin, not gold, that seems to be experiencing a growth spurt currently. The potential drawback of Bitcoin lies in its increased volatility and limited market history. Nevertheless, by 2025, its upward trends have consistently outweighed its downward ones.

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2025-01-20 02:58