The State of Investing & Crypto in numerous markets

2020 was a 12 months of great development within the cryptocurrency trade. We noticed Bitcoin attain new highs, as famend monetary establishments invested on this revolutionary asset class and enthusiasm throughout the market bounced again.

Final 12 months, bitFlyer Europe carried out the survey in European international locations measuring the consciousness and religion within the way forward for crypto. Again then two thirds of Europeans admitted to having religion that cryptocurrencies will nonetheless exist in 10 years’ time, nevertheless the bulk are nonetheless unsure how they are going to be used.

In September 2020, when evaluating our knowledge from 2020 to 2018, we’ve got seen a rise in accounts opened by customers of their 20s within the first half of 2020 at group stage.

As a international cryptocurrency alternate that has workplaces, amongst others, in San Francisco, CA, and Tokyo, Japan, this time we determined to dive deep into the present state of investing and cryptocurrencies within the US and Japan, and discover the variations between these two huge and attention-grabbing markets. Our survey focused 3000 individuals aged 20-59 throughout Japan and the US.

Key findings from our analysis:

  • Two-thirds of individuals within the US stated they’re all in favour of investing extra in monetary belongings in 2021.
  • 30% of People suppose Bitcoin/Cryptocurrencies can be a beautiful funding this 12 months, making it two occasions extra well-liked than Gold and the 4th most chosen asset. The most well-liked asset was shares at 54%.
  • 82% of the US inhabitants has heard about cryptocurrencies.
  • Roughly 20% of respondents within the US are at the moment utilizing or have used cryptocurrencies up to now.
  • 76% of individuals within the US which have heard about crypto have a optimistic notion about cryptocurrencies as an funding. In Japan, 78% of the respondents have a unfavourable notion, displaying a fairly sturdy distinction between the 2 areas.
  • Our analysis exhibits that the present market sentiment amongst American buyers is very bullish in comparison with the Japanese, reinforcing the argument that the final run-up in worth was primarily pushed by US buyers.

The State of Investing

Our analysis exhibits that 82% of individuals within the US put money into monetary belongings, with nearly a 3rd of the inhabitants allocating over 1 / 4 of their web price into investments. Alternatively, in Japan, 69% of individuals don’t put money into monetary belongings, displaying a major distinction throughout the 2 areas.

In each the US and Japan, males have a tendency to take a position greater than girls, whereas additionally allocating the next share of their web price into their investments.

There may be additionally a major distinction within the outlook for investing this 12 months. 68% of respondents within the US are planning to take a position or proceed investing, whereas that determine is solely 18% in Japan.

Why are individuals investing in 2021?

Throughout the globe, one of the crucial well-liked causes individuals want to make investments this 12 months is to put together for the long run and enhance their long-term web price. A big share of respondents want to diversify their revenue by means of investments and imagine that investing is the strongest and quickest means to develop their capital.

“With a purpose to construct your wealth, it would be best to make investments your cash. Investing means that you can put your cash in automobiles which have the potential to earn sturdy charges of return. When you do not make investments, you might be lacking out on alternatives to extend your monetary price.” — (male in his 30s, US)

After final 12 months’s occasions, extra persons are taking note of the market in hopes of capitalizing on a potential financial rebound this 12 months.

“This can be a nice time to take a position, hopefully issues can solely get higher and go up.” (feminine in her 30s, US)

Low rates of interest are additionally fueling individuals’s motivation to allocate their wealth into funding belongings. We will see the same development in Japan.

“Curiosity is just too low for deposits and financial savings. I believe it’s higher to handle your capital with some threat” — (male in his 40s, Japan).

Why are individuals not seeking to put money into monetary belongings?

There’s an attention-grabbing distinction in why persons are not seeking to make investments throughout the 2 areas. Some of the well-liked the reason why individuals within the US aren’t planning to take a position this 12 months is due to monetary challenges created by the COVID-19 disaster.

“I’ve no job at the moment, so no revenue. Cannot make investments what you do not have” — (male in his 30s, US)

“Cash could be very tight as a result of pandemic” — (feminine in her 30s, US)

Our knowledge exhibits that, logically, individuals with decrease incomes are 40% much less more likely to make investments. This, amidst the current surge in COVID-19 instances and adjustments in energy within the US, has elevated individuals’s uncertainty and worry of what’s going to occur subsequent on the macroeconomic stage.

What’s most attention-grabbing, nevertheless, is that the important motive why People don’t make investments isn’t due to the dangers of dropping cash. They primarily don’t do it as a result of they don’t have the required sources. In Japan, it’s a unique story.

Whereas the financial impression from the COVID-19 disaster additionally impacted many individuals’s potential to put money into Japan, the vast majority of those that stated that they don’t seem to be seeking to make investments highlighted the potential dangers related to investing, fairly than a scarcity of sources to take action.

“I do not need to lose even 0.0001% of my cash. I do not need to put money into something that has the danger of dropping even a small sum of money. Nevertheless, if there’s a no-risk, high-return funding, I’ll undoubtedly do it” (male in his 40s in Japan)

“I believe funding is similar as playing. I do not need to do harmful issues like dropping cash.” (Male in his 30s in Japan)

“I do not know how you can do it, and it appears that there’s a excessive threat of loss.” (feminine in her 30s in Japan)

There’s a transparent distinction within the sentiment in the direction of investing between the 2 areas. We see individuals within the US being much more open to investing and having an even bigger want to diversify their revenue by means of investing. In Japan individuals are likely to have a way more cautious stance.

The State of Crypto

Cryptocurrency adoption is increased within the US than it’s in Japan. Within the US, 22% of respondents have invested in crypto in some unspecified time in the future – over 4 occasions increased than Japan.

Equally with investing, the sentiment in the direction of cryptocurrencies is loads stronger within the US than it’s in Japan. 76% of the respondents within the US who’ve heard about cryptocurrencies have a optimistic notion about cryptocurrencies as an funding, whereas in Japan it was the exact opposite.

What’s driving individuals’s optimistic notion about cryptocurrencies?

Individuals like cryptocurrencies within the US and Japan for very comparable causes. Some of the well-liked ones is the growing reputation of cryptocurrencies and its exceptional rise in worth, which makes it a really enticing funding.

“Cryptos are rising at a quick fee and I really feel they’ll continue to grow and be very worthwhile” (male in his 20s, US)

“I noticed within the information that the worth has elevated lately” (male in his 20s in Japan)

Nevertheless it’s not solely its run-up in worth that’s getting individuals’s consideration. Many respondents highlighted crypto’s worth propositions and imagine in its long-term worth.

“I really feel [cryptocurrencies] put you in management versus huge Wall road companies. You should purchase/promote 24/7. Some have fastened amount versus shares that may at all times difficulty new shares and so on” (male in his 50s, US)

“Cryptocurrency appears to be gaining momentum with the fallout of worldwide and nationwide foreign money programs.” (feminine in her 20s, US)

Furthermore, in 2020 we noticed a wave of establishments coming into the cryptocurrency house, and individuals within the US seen. Institutional participation solidified individuals’s long-term outlook for crypto, and even their notion of it.

“Massive establishments have been beginning to purchase crypto, which may drive up shortage and due to this fact the worth. That, and after a decade it doesn’t look like it’s going wherever anytime quickly.” (male in his 20s, US)

“I selected optimistic as a result of I undoubtedly suppose it has leveled out now. To start with it was undoubtedly unfavourable (from what I heard). I believe it’s a brand new means of investing.” (Feminine in her 20s, US)

Why do individuals have unfavourable perceptions about cryptocurrencies?

Whereas the worth of Bitcoin has elevated over 250% within the final 12 months, many individuals are nonetheless afraid of its excessive worth volatility.

Moreover, after seeing many incidents comparable to hacks and experiences from mass media, many are involved concerning the crypto’s safety dangers and utilization immediately. In Japan, the place the overwhelming majority of individuals have unfavourable perceptions about crypto, these safety considerations have been paramount and deep-rooted into individuals’s perceptions.

“There was a digital foreign money incident within the information some time in the past.” — (male in his 40s, Japan)

“There’s a chance of somebody stealing it” — (male in his 30s, Japan)

Lastly, as with all new know-how, there’s a huge studying curve.

“I don’t know sufficient about it to have a optimistic opinion” — (feminine in her 30s, US)

Many individuals don’t perceive cryptocurrencies effectively sufficient in an effort to make a correct judgment about them, which finally impacts their notion. As individuals be taught extra about cryptocurrencies, we will count on this to alter sooner or later.

Which funding belongings do individuals suppose can be most engaging in 2021?

54% of respondents suppose shares can be a beautiful funding in 2021, making it the hottest asset within the US.

Crypto was two occasions extra well-liked than Gold and in addition the 4th hottest asset, as 30% of People imagine will probably be an enticing funding alternative. In Japan, crypto was the fifth hottest asset, as individuals favored different funding automobiles comparable to Mutual Funds and FX.

Diving deeper into the totally different segments, we noticed that for buyers within the US with the highest stage of expertise crypto was the third hottest asset. This group highlighted the excessive development that cryptocurrencies have skilled recently and imagine will probably be one of the crucial worthwhile investments.

“ETFs are straightforward and low value foundation, actual property will at all times produce earnings and bitcoin is gaining steam and can proceed to in 2021” — (male in his 40s with greater than 10 years of funding expertise, US)

Alternatively, crypto was the second hottest asset amongst the least skilled buyers. Crypto’s run-up in worth and growing adoption spiked the curiosity of this group, which want to capitalize on the newest developments available in the market.

Wrapping up

A big share of People want to make investments this 12 months, as they view it as one of many only methods to extend their wealth. The alternative was true in Japan, the place buyers have a extra conservative stance.

Furthermore, the adoption of cryptocurrencies within the US has grown considerably over the past 12 months, as we’ve seen an growing variety of American firms allocating capital into this new asset class and increasing their companies to cowl this revolutionary know-how. The market sentiment is at the moment very optimistic, particularly when in comparison with the Japanese market.

The outlook for cryptocurrencies this 12 months appears very promising within the US because it continues rising in reputation, particularly with the brand new era of buyers which favored the asset greater than anybody else. This may be a superb signal for Europe as training about cryptocurrency and the desire to diversify funding portfolios is at all times growing.

Regardless of the bearish sentiment in Japan, it stays as one of the crucial necessary markets on the planet and with one of the crucial structured regulatory frameworks globally.

Since 2014, our mission as a world firm has been to supply the only and most safe option to entry cryptocurrencies all over the world. We plan to proceed specializing in providing the very best stage of safety to our clients and new merchandise to offer extra worth.

Survey methodology

  • Survey interval: January 5, 2021-January 11, 2021
  • Goal group: A complete of three,000 customers (20-59 years outdated) residing within the US and Japanese markets. Japan n = 2,000, USA n = 1,000
  • The information of every market adjusts the composition of gender and age based mostly on the census outcomes in order that the developments of customers within the surveyed international locations are accurately mirrored.
  • Survey methodology: WEB questionnaire survey

* When utilizing the survey outcomes of this launch, please specify [Survey by bitFlyer USA.].

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