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• Most individuals believe crypto is a good funding
• People are attracted to new expertise
• Lack of belief in authorities turned folks to crypto

The cryptocurrency market’s recognition rose exponentially within the final decade or so. The distinction is beautiful if one seems to be on the market capitalization of the whole business right now and compares it with, say, ten years in the past.

So, understanding what drives folks to put money into cryptocurrencies is attention-grabbing.

Guess no extra.

A examine by the Federal Reserve, known as Federal Reserve’s 2022 Diary of Consumer Payment Choice, sheds mild on this subject. So right here are the principle three explanation why traders maintain crypto:

• Great potential funding
• People are fascinated by new applied sciences
• Some don’t belief the US authorities or the US greenback

Most individuals personal crypto as an funding

The overwhelming majority of particular person traders personal cryptocurrencies as a result of they believe it is a good funding. More exactly, 67% of traders are crypto house owners solely from an funding perspective.

While this is spectacular, it additionally tells a lot of the business. It signifies that most traders are simply speculating and hoping for increased costs than those they paid.

Coupled with the truth that solely 0.3% of the respondents mentioned they use it to purchase items and providers within the United States, it tells a lot about the principle purpose folks put money into cryptocurrencies.

Many personal crypto as a result of they are fascinated by new applied sciences

Another purpose to personal crypto is that traders need to have publicity to new applied sciences. 20.7% of traders are fascinated by new applied sciences, which is a good sufficient purpose for them to purchase and maintain cryptocurrencies.

Lack of belief within the US authorities or the US greenback

1.6% of traders don’t belief the US authorities or the US greenback. While not a huge quantity, it displays traders’ perception that the US authorities’s insurance policies failed to help the native forex, and thus, traders turned to cryptocurrencies.

The remainder of the respondents fell into different classes, which sum up to 8.6%.