2020 was a yr of super development within the cryptocurrency business. We noticed Bitcoin attain new highs, as famend monetary establishments invested on this revolutionary asset class and enthusiasm throughout the market bounced again.
Final yr, bitFlyer Europe carried out the survey in European nations measuring the consciousness and religion within the way forward for crypto. Again then two thirds of Europeans admitted to having religion that cryptocurrencies will nonetheless exist in 10 years’ time, nonetheless the bulk are nonetheless unsure how they are going to be used.
In September 2020, when evaluating our knowledge from 2020 to 2018, we’ve seen a rise in accounts opened by customers of their 20s within the first half of 2020 at group degree.
As a world cryptocurrency trade that has places of work, amongst others, in San Francisco, CA, and Tokyo, Japan, this time we determined to dive deep into the present state of investing and cryptocurrencies within the US and Japan, and discover the variations between these two large and fascinating markets. Our survey focused 3000 individuals aged 20-59 throughout Japan and the US.
Key findings from our analysis:
- Two-thirds of individuals within the US mentioned they’re serious about investing extra in monetary property in 2021.
- 30% of Individuals suppose Bitcoin/Cryptocurrencies will likely be a beautiful funding this yr, making it two instances extra fashionable than Gold and the 4th most chosen asset. The most well-liked asset was shares at 54%.
- 82% of the US inhabitants has heard about cryptocurrencies.
- Roughly 20% of respondents within the US are at present utilizing or have used cryptocurrencies prior to now.
- 76% of individuals within the US which have heard about crypto have a constructive notion about cryptocurrencies as an funding. In Japan, 78% of the respondents have a damaging notion, exhibiting a reasonably sturdy distinction between the 2 areas.
- Our analysis exhibits that the present market sentiment amongst American traders is very bullish in comparison with the Japanese, reinforcing the argument that the final run-up in worth was primarily pushed by US traders.
The State of Investing
Our analysis exhibits that 82% of individuals within the US spend money on monetary property, with virtually a 3rd of the inhabitants allocating over 1 / 4 of their internet price into investments. However, in Japan, 69% of individuals don’t spend money on monetary property, exhibiting a major distinction throughout the 2 areas.
In each the US and Japan, males have a tendency to take a position greater than ladies, whereas additionally allocating a better share of their internet price into their investments.
There may be additionally a major distinction within the outlook for investing this yr. 68% of respondents within the US are planning to take a position or proceed investing, whereas that determine is solely 18% in Japan.
Why are folks investing in 2021?
Throughout the globe, probably the most fashionable causes folks wish to make investments this yr is to put together for the long run and improve their long-term internet price. A big share of respondents wish to diversify their revenue by investments and imagine that investing is the strongest and quickest means to develop their capital.
“To be able to construct your wealth, you’ll want to make investments your cash. Investing means that you can put your cash in automobiles which have the potential to earn sturdy charges of return. In the event you do not make investments, you’re lacking out on alternatives to extend your monetary price.” — (male in his 30s, US)
After final yr’s occasions, extra persons are being attentive to the market in hopes of capitalizing on a potential financial rebound this yr.
“It is a nice time to take a position, hopefully issues can solely get higher and go up.” — (feminine in her 30s, US)
Low rates of interest are additionally fueling folks’s motivation to allocate their wealth into funding property. We will see an identical pattern in Japan.
“Curiosity is just too low for deposits and financial savings. I believe it’s higher to handle your capital with some danger” — (male in his 40s, Japan).
Why are folks not seeking to spend money on monetary property?
There’s an fascinating distinction in why persons are not seeking to make investments throughout the 2 areas. Probably the most fashionable explanation why folks within the US are usually not planning to take a position this yr is due to monetary challenges created by the COVID-19 disaster.
“I’ve no job at present, so no revenue. Cannot make investments what you do not have” — (male in his 30s, US)
“Cash could be very tight because of the pandemic” — (feminine in her 30s, US)
Our knowledge exhibits that, logically, folks with decrease incomes are 40% much less more likely to make investments. This, amidst the latest surge in COVID-19 circumstances and modifications in energy within the US, has elevated folks’s uncertainty and concern of what’s going to occur subsequent on the macroeconomic degree.
What’s most fascinating, nonetheless, is that the primary purpose why Individuals don’t make investments isn’t due to the dangers of shedding cash. They primarily don’t do it as a result of they don’t have the required sources. In Japan, it’s a distinct story.
Whereas the financial impression from the COVID-19 disaster additionally impacted many individuals’s capability to spend money on Japan, the vast majority of those that mentioned that they aren’t seeking to make investments highlighted the potential dangers related to investing, reasonably than an absence of sources to take action.
“I do not need to lose even 0.0001% of my cash. I do not need to spend money on something that has the danger of shedding even a small sum of money. Nonetheless, if there’s a no-risk, high-return funding, I’ll positively do it” — (male in his 40s in Japan)
“I believe funding is identical as playing. I do not need to do harmful issues like shedding cash.” — (Male in his 30s in Japan)
“I do not know the way to do it, and it appears that there’s a excessive danger of loss.” — (feminine in her 30s in Japan)
There’s a transparent distinction within the sentiment in direction of investing between the 2 areas. We see folks within the US being much more open to investing and having an even bigger want to diversify their revenue by investing. In Japan folks are likely to have a way more cautious stance.
The State of Crypto
Cryptocurrency adoption is increased within the US than it’s in Japan. Within the US, 22% of respondents have invested in crypto in some unspecified time in the future – over 4 instances increased than Japan.
Equally with investing, the sentiment in direction of cryptocurrencies is lots stronger within the US than it’s in Japan. 76% of the respondents within the US who’ve heard about cryptocurrencies have a constructive notion about cryptocurrencies as an funding, whereas in Japan it was the exact opposite.
What’s driving folks’s constructive notion about cryptocurrencies?
Folks like cryptocurrencies within the US and Japan for very comparable causes. Probably the most fashionable ones is the rising recognition of cryptocurrencies and its outstanding rise in worth, which makes it a really engaging funding.
“Cryptos are rising at a quick charge and I really feel they’ll continue to grow and be very worthwhile” — (male in his 20s, US)
“I noticed within the information that the worth has elevated not too long ago” — (male in his 20s in Japan)
Nevertheless it’s not solely its run-up in worth that’s getting folks’s consideration. Many respondents highlighted crypto’s worth propositions and imagine in its long-term worth.
“I really feel [cryptocurrencies] put you in management versus large Wall avenue corporations. You should purchase/promote 24/7. Some have mounted amount versus shares that may all the time subject new shares and so forth” — (male in his 50s, US)
“Cryptocurrency appears to be gaining momentum with the fallout of world and nationwide forex techniques.” — (feminine in her 20s, US)
Furthermore, in 2020 we noticed a wave of establishments coming into the cryptocurrency area, and folks within the US seen. Institutional participation solidified folks’s long-term outlook for crypto, and even their notion of it.
“Massive establishments have been beginning to purchase crypto, which may drive up shortage and subsequently the worth. That, and after a decade it doesn’t appear to be it’s going anyplace anytime quickly.” — (male in his 20s, US)
“I selected constructive as a result of I positively suppose it has leveled out now. To start with it was positively damaging (from what I heard). I believe it’s a brand new means of investing.” — (Feminine in her 20s, US)
Why do folks have damaging perceptions about cryptocurrencies?
Whereas the value of Bitcoin has elevated over 250% within the final yr, many individuals are nonetheless afraid of its excessive worth volatility.
Moreover, after seeing many incidents corresponding to hacks and studies from mass media, many are involved in regards to the crypto’s safety dangers and utilization right now. In Japan, the place the overwhelming majority of individuals have damaging perceptions about crypto, these safety considerations have been paramount and deep-rooted into folks’s perceptions.
“There was a digital forex incident within the information some time in the past.” — (male in his 40s, Japan)
“There’s a risk of somebody stealing it” — (male in his 30s, Japan)
Lastly, as with all new know-how, there’s a large studying curve.
“I don’t know sufficient about it to have a constructive opinion” — (feminine in her 30s, US)
Many individuals don’t perceive cryptocurrencies properly sufficient to be able to make a correct judgment about them, which in the end impacts their notion. As folks study extra about cryptocurrencies, we will count on this to vary sooner or later.
Which funding property do folks suppose will likely be most tasty in 2021?
54% of respondents suppose shares will likely be a beautiful funding in 2021, making it the hottest asset within the US.
Crypto was two instances extra fashionable than Gold and in addition the 4th hottest asset, as 30% of Individuals imagine will probably be an engaging funding alternative. In Japan, crypto was the fifth hottest asset, as folks favored different funding automobiles corresponding to Mutual Funds and FX.
Diving deeper into the completely different segments, we noticed that for traders within the US with the highest degree of expertise crypto was the third hottest asset. This group highlighted the excessive development that cryptocurrencies have skilled recently and imagine will probably be probably the most worthwhile investments.
“ETFs are straightforward and low price foundation, actual property will all the time produce earnings and bitcoin is gaining steam and can proceed to in 2021” — (male in his 40s with greater than 10 years of funding expertise, US)
However, crypto was the second hottest asset amongst the least skilled traders. Crypto’s run-up in worth and rising adoption spiked the curiosity of this group, which wish to capitalize on the most recent traits out there.
A major share of Individuals wish to make investments this yr, as they view it as one of many handiest methods to extend their wealth. The other was true in Japan, the place traders have a extra conservative stance.
Furthermore, the adoption of cryptocurrencies within the US has grown considerably during the last yr, as we’ve seen an rising variety of American corporations allocating capital into this new asset class and increasing their providers to cowl this revolutionary know-how. The market sentiment is at present very constructive, particularly when in comparison with the Japanese market.
The outlook for cryptocurrencies this yr appears to be like very promising within the US because it continues rising in recognition, particularly with the brand new era of traders which favored the asset greater than anybody else. This is also an excellent signal for Europe as training about cryptocurrency and the desire to diversify funding portfolios is all the time rising.
Regardless of the bearish sentiment in Japan, it stays as probably the most necessary markets on this planet and with probably the most structured regulatory frameworks globally.
Since 2014, our mission as a worldwide firm has been to supply the only and most safe solution to entry cryptocurrencies all over the world. We plan to proceed specializing in providing the best degree of safety to our clients and new merchandise to offer extra worth.
- Survey interval: January 5, 2021-January 11, 2021
- Goal group: A complete of three,000 shoppers (20-59 years previous) dwelling within the US and Japanese markets. Japan n = 2,000, USA n = 1,000
- The information of every market adjusts the composition of gender and age based mostly on the census outcomes in order that the traits of shoppers within the surveyed nations are accurately mirrored.
- Survey technique: WEB questionnaire survey
* When utilizing the survey outcomes of this launch, please specify [Survey by bitFlyer USA.].