Kraken survey: 73% of crypto holders plan to reinvest in 2025

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As a seasoned analyst with decades of experience in the financial industry, I have witnessed the evolution of the global economy and the rise of digital assets. The Kraken survey results are intriguing, particularly the shift in attitudes towards crypto among Americans.

According to a recent Kraken poll, people’s views on cryptocurrency are shifting. In fact, around 55% of Americans now see crypto assets as having practical applications in the real world, while approximately 73% of them intend to invest again in 2025.

A study carried out by the significant cryptocurrency platform Kraken involving 2,537 U.S. residents found that approximately half (55%) think that cryptocurrencies have practical applications, regardless of whether they currently own any. Yet, nearly a third (29%) remain unsure about its long-term prospects.

Approximately 73% of those now investing in cryptocurrency have expressed their intention to continue doing so as we welcome 2025. Remarkably, about 43% believe that digital assets are more secure than conventional financial systems, whereas approximately 30% hold the opposite view. Furthermore, around 52% perceive crypto as a promising long-term investment opportunity.

The study delves into the extent that “cryptocurrency misconceptions” continue influencing people’s views on crypto investments, and if there has been a change in their sentiments over time.

A common misconception is that cryptocurrencies are primarily utilized for illicit activities. Despite Kraken’s survey findings showing that 60% of participants still believe crypto drives illegal activities more than any other asset, the actual narrative, as suggested by research, paints a different picture.

As per Chainalysis’s Crypto Crime Report of 2024, it was discovered that only a minuscule proportion of crypto transactions, approximately 0.34%, were associated with illicit activities in that year. Interestingly, a study conducted by Crypto ISAC indicated that cash remains the preferred method for criminals involved in unlawful activities.

Contrarily, about 8% of participants consider cryptocurrency to be similar to a Ponzi scheme. A Ponzi scheme refers to an investment scam where funds from new investors are used to pay off existing ones. However, 53% of respondents suggest that negative perceptions towards crypto might stem from a lack of knowledge and understanding, indicating the significance of educating the public about cryptocurrencies.

Gen X has the most faith in crypto

The data gathered by the Kraken survey indicates that Generation X, individuals aged between 45 and 60, have the highest level of trust in cryptocurrency. In fact, the survey reveals that about two out of three people within this age bracket view crypto as a viable investment opportunity.

As a Gen X crypto investor, I firmly believe that my experience of surviving through two major economic crises – the Great Recession of 2008 and the COVID crisis of 2020 – has significantly influenced my skepticism towards traditional currencies. These historical events have shown me firsthand how these currencies struggled to maintain their value amidst high inflation rates, leading me to seek alternative investment opportunities like cryptocurrencies.

Members of Generation X are known for introducing the Cypherpunk movement, a significant shift towards cryptocurrencies. Essentially, this generation has navigated the world of conventional finance as well as the emergence of digital currencies. Their unique viewpoint, stemming from their exposure to both traditional and modern financial systems, could enable them to appreciate the real-world utility of cryptocurrencies more effectively.

Contrarily, it seems that Generation Z exhibits the lowest level of faith in cryptocurrency. A mere 32% of respondents within the age group of 18 to 29 believe that crypto has tangible real-world applications. This might suggest that younger investors are still trying to grasp the intricacies of cryptocurrencies and the uncertainties associated with them, as they navigate this emerging financial landscape.

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2024-12-13 11:30