Reports Suggest New Investors Developing Interest In Cryptocurrencies

Many people are sceptical about cryptocurrencies due to the sector’s volatility. But more people in emerging markets are embracing it as a way to make more returns in the long run. No one can argue that investing in cryptocurrencies is very risky, but there’s also no doubt that it offers long-term promises for high ROI.

So, it’s not surprising that a recent survey exposed that LATAM and APAC investors believe in the long-term growth potentials of cryptocurrencies. In the study carried out in these markets, 75 per cent of investors were eager to increase their investments. These investors are mainly in Latin America and Asia-Pacific markets.

The Toluna researchers’ research involving 9000 investors from 17 countries revealed that those from APAC & LATAM opined that making a crypto investment is profitable in the long run, given the upwards trend that seems to continue.

This opinion is different from what participants in the developed markets believe. According to them, cryptocurrencies will soon notice another upcoming hype circle, not in the long run.

Presently, the most lucrative market for crypto is the emerging market. This is because at least 32 per cent of the consumers there still believe that crypto investment is worth it in the long run.

Unlike the developed markets where trust for crypto investment was found only amongst 14 per cent of the consumers. Countries such as European Union and the USA are not too supportive or believe that crypto is the way forward.

But when it comes to the reason for these differences in response, the researchers discovered that many people are yet to understand crypto in its total capacity.

Furthermore, they found that even amongst the 61 per cent of respondents that claimed to know cryptocurrencies, only 23 per cent see the asset class. That’s why the research firm concluded that this is due to the complexities of the crypto concept.

For instance, many ads promote NFTs to increase awareness of the sector. But none is targeted to help people understand what NFTs are all about.

The research also showed that 41 per cent of emerging markets have invested in crypto while the developed markets have but 22 per cent. Also, 42 per cent of players in the developed markets opine that crypto is risky, while only 25 per cent in emerging markets believe such.

Toluna revealed that Millennial is taking the lead among the people who have invested in crypto. According to the data, 40.5 per cent between the ages of 25 to 34 in both markets are crypto investors. Besides Toluna, another company, Morning consults, also discovered that 48 per cent of millennial homes are crypto owners.

This is different from those between the ages of 57 to 64, also known as Baby Boomers. However, this group only represents 21 per cent of crypto investors.