Cryptocurrency prices led by the Bitcoin boom in 2017 resulted in a market cap high of over $800 billion. This has been one of the most talked-about phenomena in recent times but the hype regarding cryptocurrencies might be premature.
Twitter poll shows that cryptocurrency adoption is still underwhelming
A recent twitter poll revealed that not many retail investors have embraced cryptocurrency yet. However, this means that there is still room for the industry to grow. According to the poll, most retail investors are yet to embrace cryptocurrencies and get completely involved in the market. From the data collected in a questionnaire administered to over 3,200 people, only around 10% of retail investors have taken up the idea of cryptocurrency.
Although this information is undeniably speculative, it is somehow definitive. Out of over 3,200 participants, around 83% indicated that less than 10% of their relatives or friends owned crypto. However, around 3% of the participants indicated that the number could be bigger, up to around 50%. Based on these statistics this could be taken as a sign that cryptocurrency is yet to be adopted and be popular as many enthusiasts would have preferred it to be.
Despite the gloomy picture, there is still a huge silver lining because the results demonstrate that there are massive opportunities for investors to venture into the cryptocurrency industry. The majority of people know little about cryptocurrency and they are yet to be introduced and get involved in the space. In essence, the industry is where it is today with minimum to no participation from retail investors which implies that the industry will most likely grow significantly once more people start to embrace crypto.
The cryptocurrency boom of 2017
At the beginning of this year, a CryptoPotato report indicated that more than 50% of cryptocurrency investors hold 60% to 100% of their portfolios in altcoins while less than 25% have between 0% and 20%. It is important to note that in the poll that saw over 10,000 people voting, it was carried in April during the moderate altseason before the major Bitcoin price surge. In the past few months, altcoins have taken a beating with most of them registering new all-time lows against Bitcoin.
In June, an incisive poll was conducted involving more than 40,000 people and it cemented the assertion that the largest boom in the industry for new-comers was experienced back in 2017. Over 58% of the participants who took part in the poll indicated that they acquired their first digital coins in 2017 with 20% of them indicating that they had bought their first crypto in 2016 or before.
Recent reports have shown only a modest increase in interest from retail investors. However, awareness of cryptoassets as an asset class have increased dramatically, with many investors admitting a longer-term likelihood of investing in crypto. The Bitcoin surge this year has largely been attributed to institutional interest. If that continues to drive the Bitcoin price, many analysts expect retail investors to pick up and drive it further.