Whether it’s a democratic clean-up led by Joe Biden or the re-election of Donald Trump, Bitcoin (BTC) is likely to flourish. Industry leaders, including DCG and Grayscale CEO Barry Silbert, say a victory from Trump or Biden will see BTC rise.
The optimistic attitude of industry leaders emerged despite serious election risk after examining bitcoin in shades of gray.
Grayscale, a large cryptocurrency investment company with $ 7.6 billion in net assets under management, released a survey on October 27, highlighting that the potential Bitcoin market could expand significantly by 2020.
In 2019, Grayscale found that 36% of US investors are interested in investing in bitcoin. This year, 55% of US investors are looking for Bitcoin. Studies say:
“Interest is growing: more than half of US investors are interested in investing in Bitcoin by 2020, and more than half (55%) of respondents have expressed interest in Bitcoin investment products. This is a significant increase from 36% of investors who said they were interested this year. 2019. ‘
The increase of almost 20% represents a significant increase in mass awareness in a short period of time. This also coincides with the growing demand for Bitcoin from institutions after Bitcoin’s impressive 200% recovery since March.
To raise public awareness to increase BTC
Bitcoin’s strong basic and rapidly growing demand may offset selective risk in the fourth quarter.
For example, a particularly positive statistic that shows an apparent increase in the demand for bitcoins in 2020 is the rate at which people interested in bitcoins become actual buyers.
According to Grayscale, 83% bought BTC among those who expressed their intention to invest in bitcoins. The researchers wrote:
“Among those who reported investing in bitcoin, 83% have made investments in the past year, indicating that digital currencies are becoming an increasingly attractive component of modern investment portfolios.”
A higher conversion rate from stakeholder to investor is important because the potential Bitcoin market has expanded rapidly.
Furthermore, the potential US market of around 32 million investors does not include other large markets such as Europe and Asia.
Meanwhile, the number of investors familiar with bitcoin has grown significantly. The survey showed that 62% of investors now know BTC, up from 53% in 2019. The study says:
According to this year’s survey, the market for potential Bitcoin investors is 32 million, up from 21 million just a year ago. 62% of investors reported being “familiar” with bitcoin this year, up from 53% in 2019. ”
The potential Bitcoin market in the United States is now 32 million investors. Source: shades of gray
What attracts investors the most to bitcoin?
The main reason for Bitcoin’s appeal is still the exponential growth potential. In the eyes of institutional investors, however, it is also considered a hedge.
Bitcoin is an anti-inflation hedging fund that has proven its enormous growth potential, making it an attractive portfolio activity for both institutional and accredited investors.
Therefore, the number of investors who buy bitcoins with part of the capital or portfolios has also increased and is based on existing positions. Grayscale Research says:
“The factors that led to interest in bitcoin over the past year have resonated more with investors in 2020. In 2019, 59% of respondents indicated that the opportunity to start small and grow investments over time will be a catalyst when considering Bitcoin. Products. Investments; in 2020, this figure increased to 65%. ”
The apparent increase in interest in bitcoin comes after a steady increase in the influx of institutional investors. As the Cointelegraph reported, on October 23, Grayscale increased its net worth by $ 300 million in a day when the price of bitcoin reached new annual highs.