Grayscale Survey: Over Half of Investors Interested in Bitcoin, Pandemic Has Significant Impact on Bitcoin

The latest market research report released by Grayscale, the world's largest cryptocurrency asset management company, shows that American investors' interest in Bitcoin has significantly increased. Due to the uncertainty that the COVID-19 pandemic has brought to the macroeconomy, Bitcoin has become more attractive to investors.

Growing Interest in Bitcoin Among U.S. Investors

Grayscale's survey report, conducted from June to July 2020, collected the views of 1,000 U.S. investors aged 25 to 65. The survey results showed that over half of U.S. investors (55%) are interested in investing in Bitcoin, a significant increase from 36% in 2019.

Michael Sonnenshein, a board member, stated:

"The data clearly shows a significant increase in investor interest in Bitcoin in 2020. As investors become more familiar with Bitcoin and truly understand its role in a diversified portfolio, the likelihood of them investing increases. Additionally, with mainstream companies/individuals such as PayPal, Square, MicroStrategy, and Paul Tudor Jones supporting Bitcoin, we believe investor attitudes towards Bitcoin and the digital asset space will become more open."

Far-reaching Impact of COVID-19 on Bitcoin

On the other hand, Grayscale also found in this survey that the COVID-19 pandemic has had a significant impact on Bitcoin investors. 63% of Bitcoin investors purchased Bitcoin in the past four months due to the outbreak. Furthermore, with the global pandemic's influence, 39% of individuals believe Bitcoin has become more attractive.

Grayscale wrote in the report:

"According to respondents, Bitcoin seems to share some similarities with safe-haven investments. Bitcoin's scarcity, verifiability, fundamentals, low correlation to global markets, and characteristics of being outside government control make Bitcoin akin to traditional safe-haven assets."

Safe Haven and Wealth Transfer

Furthermore, Grayscale pointed out that investors aged 35 to 44 have experienced three economic crises and understand that traditional hedging tools (such as real estate, value-hedged stocks, and bonds) are not sufficient during crises. In such circumstances, Bitcoin will be an attractive asset safe haven when the next crisis hits.

However, the report emphasizes that the younger generation remains a significant source of value for the cryptocurrency market:

"In fact, the majority of current and potential Bitcoin investors have not yet reached their peak average annual income in their lifetimes, coupled with an estimated $68 trillion wealth transfer within the next 25 years (the transfer of primary assets from the elderly to the younger generation), bringing more possibilities for Bitcoin's long-term growth."