Although some claim that the cryptocurrencies are mostly supported by criminals, in reality this is a myth that needs to be disproved - the sooner the better. Who actually buys Bitcoins and other virtual currencies? Here are some interesting reports!
Institutional investors (large investment entities)
Cryptographic assets are of interest not only to individual units but also to large investment entities. This is confirmed, among others, by research conducted by Fidelity Investments - their results were published at the beginning of June this year in Bloomberg. It turns out that about 1/3 of institutional investors own Bitcoins or other cryptocurrencies. The surveys covered both Europe and the United States, with the participation of pension, traditional and hedging funds and investment advisors. The total number of surveyed entities is 774 - interestingly, as many as 36% of them admitted that they have cryptocurrencies or their derivatives.
As it turned out, 1/4 of such institutions owned Bitcoins. In turn, 11% of all surveyed entities declared that they invested in Ether - the second largest cryptocurrency in terms of market capitalization. These results illustrate the growing interest in the digital assets market.
Read also: TOP 5 facts about cryptocurrencies which you should know!
Retail investors (individuals)
Due to the fact that there is a very low entry threshold in the case of the crypto market, anyone can become a user of such currencies. Bitcoin itself is divided into eight decimal places - so its enthusiasts can buy a small fraction of BTC instead of the whole. T
he main question to be asked here is, who are these investors? Although whales have a huge amount of Bitcoins, small users with a balance of no more than 10 BTCs are still coming!
Currently, this is as follows (as of 31.06.2020. Data taken from Glassnode)
Addresses with a greater or equal balance: | Number of addresses |
10 000 BTC | 107 |
1 000 BTC | 2 135 |
100 BTC | 16 091 |
10 BTC | 154 728 |
1 BTC | 817 575 |
0,1 BTC | 3 048 944 |
0,01 BTC | 8 402 082 |
addresses with a balance greater than zero BTC | 29 899 974 |
Looking at the balance in dollars, it looks like this (as of 31.06.2020. Data taken from Glassnode):
Addresses with a greater or equal balance: | Number of addresses |
milion USD in BTC | 13 097 |
100 000 USD in BTC | 170 956 |
10 000 USD in BTC | 702 122 |
1 000 USD in BTC | 2 877 500 |
100 USD in BTC | 7 700 403 |
10 USD in BTC | 15 351 666 |
1 USD in BTC | 22 159 741 |
Which generations are the most willing to invest in cryptocurrencies?
There have been many studies that have confirmed that cryptographic assets are of greater interest to young people. This is mainly due to the lack of understanding of certain technical issues by a significant proportion of older investors. This trend is confirmed by the results of research conducted by The Tokenist at the turn of April this year. As it turns out, of the respondents in this age group, only 7% declared that they had Bitcoins.
When asked about their trust, as many as 93% of them stated that they gave it more to larger banking institutions, such as Goldman Sachs, than to the cryptic one. A completely different generation of millenniums had a different inclination, in this case as many as 51% of them showed more confidence in Bitcoin and 14% declared that they had it.
Read also: 10 Things to Know Before Getting Your First Bitcoin
