One in Ten Americans Invests in Cryptocurrencies

The adoption of cryptocurrencies in the U.S. is growing, with one in ten individuals in the country, specifically 11 percent, investing in cryptocurrencies. According to a CNBC survey and American company Momentive published this month, 5,530 respondents provided various reasons for their investment decisions.

60 percent of American crypto investors cited the potential for long-term growth, while 44 percent see potential for high growth in the short term. A third (33 percent) were attracted by the ease of conducting their own transactions, while just over a quarter (26 percent) were captivated by the excitement of investing.

Moreover, investors were not necessarily influenced by some of the typical narratives surrounding cryptocurrencies.

Less than half of the respondents (44 percent) stated that they do not know where Bitcoin will be by the end of 2021. In fact, less than one-fifth (21 percent) of respondents believe that Bitcoin will end the year higher than its current price.

In contrast, nearly half of the respondents (45 percent) consider cryptocurrencies to be a high-risk investment.

Investor Demographics

The survey also provides a clear picture of the type of individuals who are most likely to invest in cryptocurrencies.

Men are more than twice as likely as women (16 percent compared to 7) to invest in crypto, a statistic that holds across all racial and ethnic groups.

Age is also a key component, with older investors viewing the sector as high-risk. A total of 29 percent of investors aged 18 to 34 believe that cryptocurrencies carry high risk, while nearly half (46 percent) of older respondents, those aged 34 to 65, believe that cryptocurrencies are high-risk.

The Rise of Social Media

The majority of respondents cited the rise of social media and technology as factors in their investment behavior.

More than one in ten (12 percent) respondents attribute social media as the place where they first learned how to invest. However, the rise of social media has predictably had a greater impact on younger investors.

Only 3 percent of those aged between 35 and 64 said that social media taught them how to invest. Only 1 percent of those over 65 said the same. 

Investment advice on social media has sparked controversy in the past. In July of this year, TikTok banned paid promotions for cryptocurrencies but did not prohibit unpaid, vague financial analysts from pumping their favorite cryptocurrencies.

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