After the harsh crash in April all the way down to 3,500$ Bitcoin experienced a quick recovery and many experts already confirmed a new Bitcoin bull run 2020. However, it is fair to ask whether this Bitcoin bull run is different – both in terms of adoption and who is buying right now.
Bitcoin Bull Run 2020 – Consumer Studies
Studies of consumer perception of Bitcoin are rare. Most studies focus on how retail uses Bitcoin, rather than their perception of Bitcoin as an investment vehicle (store of value). One study conducted for TheTokenist.io in April 2020 aims to bring some light: 4,852 participants in 17 countries were interviewed. The participants are between 18 and 65 years old, with almost half of the respondents belonging to the age group between 25 and 35 years. As a basis for the comparison, several surveys from 2017 were used to assess how attitudes towards the crypto asset have changed over the past three years.
Bitcoin Adoption Study – An Overview
The TheTokenist study resulted in a significant increase in positive sentiment. Bitcoin adoption, especially as a long-term store of value, continues to advance:
61% of respondents (and 78% of millennials) are now familiar with Bitcoin.
14% of millennials have already owned the asset.
60% of respondents felt that Bitcoin was a positive innovation in financial technology.
47% of those surveyed trust Bitcoin towards big banks.
59% of Millennials believe that most people will be using Bitcoin within the next decade.
44% of Millennials said that they are likely to buy Bitcoin over the next five years.
Over 45% of respondents preferred Bitcoin to stocks, real estate, and gold.
Bitcoin All Time High – Can it Break 20,000$?https://www.dailystocktips.co.in/currencies/bitcoin/
As of the time of writing this article Bitcoin jumps around 18,000$, being only 2,000$ away from its prior Bitcoin All Time High. Many indicators suggest that it will break the previous Bitcoin All Time High. In fact, the many metrics have already reached ATHs such as the market cap of Bitcoin.
Additionally, we have noticed relatively high “institutional” demand, rather than retail demand. In the Bitcoin Bull Run 2020 we already saw Paypal entering Bitcoin, Paul Tudor Jones, Grayscale, MicroStrategy and many more entering the field of Bitcoin. Certainly the Bitcoin adoption among larger corporations and institutions surged dramatically.
Comparing Bitcoin to Other Financial Assets
Over 45% of respondents would rather own Bitcoin than stocks, real estate and gold, an increase of 13% from the 2017 baseline. The increase is particularly evident among male millennials, who would now prefer to own Bitcoin over government bonds. Such people are actively contributing to Bitcoin adoption.
While Bitcoin has gone through multiple cycles of volatility since 2017, it remains the leading alternative asset – especially among younger investors. This growing trust is reflected in a huge increase in public trust in Bitcoin as an asset class – especially since the recent COVID-19 market fluctuations when central banks are printing massive amounts of money.
Familiarity with Bitcoin increased significantly
According to study data, familiarity with Bitcoin has increased significantly since 2017: 36% of all respondents are now somewhat familiar with Bitcoin and 6% of those surveyed have already owned it. While the majority of respondents in 2017 had heard of Bitcoin but were not familiar with it, in 2020 the majority of respondents stated that they were at least somewhat familiar with Bitcoin.
This fact is likely the result of Bitcoin`s rapidly growing profile in the media and increased support for Bitcoin from retailers. Over the past three years, Bitcoin has received increasing coverage in the mainstream press, which continues to be the main source of information for those over 65. Many retailers, especially online shops, now support Bitcoin payments, which may explain the increased adoption rates among millennials. Also the Bitcoin adoption in terms of Bitcoin ATMs and cash machines is increasing.
Bitcoin & Crypto innovates FinTech
Attitudes towards Bitcoin are becoming clearer and more positive: 60% of all participants believed that Bitcoin was a positive innovation in financial technology, an increase of 27% over the past three years. Data indicates that the knowledge about Bitcoin has increased dramatically over the past three years. In 2017, 40% of respondents felt unable to judge whether the technology was a positive financial innovation.
Trust in Bitcoin and in large banks
In the past three years there has been a significant loss of confidence in traditional banking institutions, from which Bitcoin has benefited greatly. 47% of respondents trust Bitcoin more than major banks, up 29% over the past three years. The increased trust in BTC can be observed especially among millennials. Respondents over 65, on the other hand, seem very reluctant to trust Bitcoin: 93% of seniors still trust large banks and this level of trust has remained essentially constant since 2017.
In 2020, 44% of millennials say they are expected to buy Bitcoin in the next five years which might be a big factor for the Bitcoin Bull Market 2020 and the following years. Bitcoin adoption is advancing especially among younger people. Even so, the number of people over 65 who would invest in Bitcoin has remained relatively stable over the past few years. Most of those over 65 (almost 80%) don’t think they would be investing in Bitcoin in the next 5 years.
The Bitcoin Bull Market 2020 and the confidence that Bitcoin will become a widely used currency has increased over the past three years. 43% of respondents and 59% of millennials believe that most people will be using Bitcoin within the next decade. The greatest increase in trust can be seen in the millennial age group. Over 65s remain skeptical that the currency will gain general acceptance.
Bitcoin Bull Run 2020 as a Commodity
The number of respondents who fail to see the value of Bitcoin because it is an intangible asset has decreased significantly since 2017. Over a third of Millennials now have no problem with the intangible nature of Bitcoin. In 2017, almost half of the respondents (49%) believed that Bitcoin was an untrustworthy investment because of its untouchability. Today only 15% of people think so – and these mostly focus on older age groups.
The Bitcoin Bull Run 2020 might very well be under ways and many of the facts mentioned above would underline that statement.
Also the recent surge in price might follow the trend of the Bitcoin stock2flow model and continues its market cycles after halvings.
Disclaimer: None of this is financial advice. All content on this website and this article is provided for informational purposes only. You must consult your financial advisor first before making any financial decisions. Image Source: Unsplash, Pixabay