This blog is an excerpt from a research report titled “Highlights From SharesPost’s 2018 Cryptocurrency and Blockchain Survey.” To download the report, please log in to your SharesPost account or register here.
Despite a volatile market and regulatory uncertainty, cryptocurrency remains highly appealing for investors and consumers, and many will continue to buy more digital currencies in 2018, according to SharesPost’s First Annual Cryptocurrency Survey.
More than two-thirds of current cryptocurrency owners (consumers and investors) plan to increase their holdings, while 21 percent of survey respondents said they will purchase their first cryptocurrencies sometime over the next 12 months.
SharesPost invited consumers and individual accredited investors to participate in an online survey. Our poll was designed to understand their views about cryptocurrencies and Blockchain and what the future holds for digital currencies. The survey was conducted during January and February of this year. We received responses from more than 2,300 consumers and over 100 investors.
For those who are interested in learning more about cryptocurrencies and blockchain technology, please check out our report – Decrypting Blockchain – The Internet of Value.
The outlook for digital currencies is positive, despite the recent volatility in cryptocurrencies. Prices for Bitcoin have wildly fluctuated over the past few months. At the same time, the U.S. Securities and Exchange Commission is actively investigating Initial Coin Offerings (ICOs) and cryptocurrencies as a whole. The SEC has already subpoenaed companies for information, and the agency has penalized issuers, advisors, and unregistered exchanges.
But the regulatory uncertainty doesn’t seem to be deterring the desire to own cryptocurrencies. Indeed, investors and consumers regard Etherium, Bitcoin, and XRP/Ripple as the best-positioned cryptocurrencies for the long term.
Other highlights from the survey:
Investors expect Blockchain technology to disrupt Fintech in the near future: Investors believe Blockchain will challenge companies in money transfer, payments and asset management over the next few years. Companies such as Ripple, Circle and 21.com, as well as consortiums like R3, are developing Blockchain solutions focused heavily on financial services.
The majority of crypto owners think digital currencies will go mainstream by 2025: Over 60 percent of consumers and investors say cryptocurrencies will be widely adopted by the end of 2025. However, 28 percent of respondents believe cryptocurrencies will never go mainstream or they don’t have a strong opinion either way.
Crypto owners say security and convenience are top areas for improvement: Over one-third of consumers and individual investors would embrace cryptocurrencies if banks and ATMs made it easier to use them. The increasing number of cyber attacks on crypto exchanges, coupled with volatility in value, are also a key concern.
Consumers and investors alike need more Blockchain education: Almost half of the consumers and investors say a lack of familiarity with Blockchain prevents them from investing in it. Survey respondents are also concerned that the technology remains fairly unproven. We believe these challenges are solvable and are the growing pains typical of any game-changing technology.
This article does not constitute an offer to provide investment advice or service. Registered representatives of SharesPost Financial Corporation do not (1) advise any member on the merits or prudence of a particular investment or transaction, or (2) assist in the determination of fair value of any security or investment, or (3) provide legal, tax, or transactional advisory services.
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