Although bitcoin’s price has dropped more than 60% from its all-time high, this “crypto winter” hasn’t made people less interested in purchasing and utilizing digital assets, particularly cryptocurrencies.
According to PYMNTS and BitPay’s August “Paying with Cryptocurrency” poll, 56% of customers claim to be somewhat interested in purchasing cryptocurrency over the next year. Nearly 42% of millennials say they plan to buy cryptocurrency in the coming year. That percentage falls to roughly 26% for Gen Z.
Why, then, are cryptocurrencies still so fascinating?
Over 50% of respondents are motivated by the potential to profit from their cryptocurrency investments, while 15% of respondents claim that “fear of missing out (FOMO)” is the primary factor in their choice.
“History has shown us that the market has defied all odds, even during downward periods, so investors remain positive about the ability of bitcoin and cryptocurrencies to remain resilient,” says Iyandra Smith-Bryan, Chief Operating Officer of Quantfury, a global broker-dealer that offers exchange spot prices on international and crypto exchanges.
In addition, investors frequently see the bright side of crypto winters. Smith-Bryan continues: “It eliminates the weaker players, leaving the best players on the field; giving those best players an opportunity to concentrate on advancements in technology, product development, and heightening support and service.”
Many people want to be able to buy things with their crypto assets as well as profit from them.
According to Checkout.com’s “Demystifying Crypto“ survey, 40% of consumers between the ages of 18 and 35 intend to use cryptocurrency to pay for goods and services this year.
According to Max Rothman, head of crypto and digital assets at Checkout.com, as the process of using cryptocurrency to make transactions becomes more seamless, “we will see hockey stick-like growth — much like the speed of growth of the internet.”
Currently, it’s hard to use cryptocurrencies like bitcoin (BTC) and ether (ETH) as a means of payment because their prices fluctuate.
According to Rothman, stablecoins, a type of cryptocurrency whose value is linked to the cost of another item like gold, can offer both consumers and retailers the desired level of price stability.
Although cryptocurrencies are still very popular, they always have associated risks. Cryptocurrencies are volatile digital assets with fluctuating values. Because there is no guarantee of success, experts advise only investing the amount of money you are willing to lose.
Also, hackers have been known to break into virtual wallets where you store your cryptocurrency and steal your funds, so extra precautions must be taken to safeguard assets.
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