A survey commissioned by personal finance comparisons website, Finder, has revealed that the demand for cryptocurrencies in the United States is low despite the excitement and euphoria surrounding the digital coins. Per the survey under 8% of Americans are owners of virtual currencies. The survey was done on 2001 Americans. According to the New York University?s Stern School of Business finance and valuation professor, Aswath Damodaran, the hype around virtual currencies is not a reflection of the reality.
“Bitcoin has taken over the public imagination. But it’s a very small phenomenon,” said Damodaran.
Some of the reasons that have prevented Americans from investing in virtual currencies include fear of being defrauded, the high risks involved and lack of a proper understanding of digital coins. There are those who have refused to invest because they are concerned that virtual currencies are a bubble waiting to burst.
Of the under 8% who have invested in virtual currencies the most popular cryptocurrency among Americans is Bitcoin (BTC) at 5.15% followed by Ethereum (ETH) at 1.8%. Bitcoin Cash (BCH) is the third most popular virtual currency in the United States at 0.90% followed by Ripple (XRP) at 0.85%. Other popular digital coins in the world?s largest economy include Stellar Lumens (SLM) and Cardano (ADA).
According to the study the choice of virtual currency to invest in was determined mostly by the research that the particular investors conducted individually. About 40% of the respondents said the news reports concerning a particular virtual currency determined their chosen virtual currency. There was also a significant number that simply applied the herd mentality and selected their virtual currency based on peers.
The study also revealed a gender gap with regards to owning virtual currencies with men being more likely to hold virtual currencies compared to women. Among the respondents 4.25% of women indicated that they owned digital coins compared to 11.86% of males who revealed they had invested in virtual currencies.
Despite being more likely to hold virtual currencies men exhibited more caution towards them relative to women.
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