- Cryptographic and digital assets have lost their value this year amid fears of inflation and recession.
- But that has not diminished interest in digital assets and cryptocurrencies, according to a Bank of America survey.
- Ninety-one percent of respondents say they still plan to buy crypto in the next six months.
According to Bank of America, the spectacular crash of cryptography has not at all deterred people’s interest in digital assets.
Ninety-one percent of the 1,013 people surveyed by the bank in early June said they expected to buy cryptocurrencies in the next six months. That’s the same percentage as those who have actually bought in the last six months, BofA said.
This may come as a surprise to some, given the extent to which cryptocurrencies have fallen as fears of inflation and recession have taken over the market. Bitcoin has lost two-thirds of its value since its all-time high in early November, and TerraUSD and its sister currency Luna collapsed in May, showing that sometimes stable currencies are not necessarily stable. TerraUSD and Luna are worthless now and lawsuits have been filed.
And it’s not over. On Tuesday, Coinbase Global announced plans to cut about 1,100 jobs, or about 18% of its global workforce, as part of a restructuring to help manage its operating expenses in response to current market conditions.
The news followed Monday’s news from crypto lender Celsius, who told customers they could temporarily withdraw funds from the platform.
Despite all this, there are still buyers, BofA said.
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What does the survey of cryptographic / digital assets say about the market?
“Despite the strong correction in cryptocurrency valuations, consumer interest in the sector remains strong,” BofA analysts said in the report.
Around 9 out of 10 users of cryptographic and digital assets and potential users plan to buy cryptography in the next six months, the same percentage of people who actually bought in the last six months.
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Thirty percent said they did not plan to sell any of their shares in the next six months, and the same percentage said they did not sell any of their shares in the last six months. Still, most were mostly short-term investors, and 77% usually keep their cryptocurrency or digital asset for less than a year.
The most common cryptocurrency transaction was worth less than $ 25. Square PayPal, SoFi, and CashApp users tended to have a smaller average purchase size and lower revenue than those who used Coinbase and Crypto.com for their transactions. said the investment bank.
Why do people want crypto?
Of the 58% of respondents who currently own cryptographic or digital assets, they said their main reasons for investing were expectations of price appreciation, portfolio diversification and interest in technology and enjoying being part of the cryptographic community.
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Thirty-nine percent used cryptocurrencies to shop online, with 49 percent interested in doing so. Meanwhile, 34% used crypto to buy things in person, with 53% interested in doing so.
“We believe that this could be explained by the growing popularity of products that allow the use of stored cryptographic balances for transactions between consumers and merchants, so an intermediary (such as PayPal through its Checkout With Crypto service or Visa through its Coinbase card) it converts crypto into fiat currency before it is paid to the trader, ”analysts said.
Only 10% of those who used crypto as a payment method said they did not plan to do it again, mainly due to the “lack of acceptance of merchants” (23%).
How much cryptography do people have in their wallets?
Most people own only a small amount, and 65% have less than 10% of their total investment portfolios invested in crypto or other digital assets. Only 5% said most of their portfolio was invested in crypto or other digital assets.
What are the most popular digital assets that people own?
The most common cryptocurrencies that people own are Bitcoin and Ethereum at 75% and 44%, respectively. Meme coins like DogeCoin and Shibu Inu came in second with 26%, followed by stablecoins with 12%. Surprisingly, 8% still owned TerraUSD even though it is now worthless.
NFTs, or non-fungible tokens, are also popular. Among those who currently own cryptographic or digital assets, 38% own an NFT.
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More than 50% of respondents who own some form of crypto or digital asset said they plan to buy NFT in the coming months.
Medora Lee is a reporter for money, markets, and personal finance at USA TODAY. You can contact her at firstname.lastname@example.org and subscribe to our free daily newsletter for personal finance tips and business news Monday through Friday mornings.
The Associated Press contributed to this report.