Investing in Bitcoin: Survey - Report

Please note: This article wasgoed updated on November 26th, 2018 with Part #Two of our November survey. The Part #Two survey of Bitcoin investors wasgoed conducted to the same grouping of 564 respondents.

The price of Bitcoin has risen dramatically since the embark of the year. The virtual currency now trades at $9,349 (spil of 11/26), up from $997 at the commence of 2018. While the price of Bitcoin is slightly off its high of $9,478, there have bot no signs of slowing media coverage, headlines, or fresh investor request.

Ter September, LendEDU asked 1,000 Americans a series of questions about Bitcoin spil both an investment chance and spil a currency. Te October, wij asked 1,000 Americans a series of questions related to Ethereum, Ripple, and Initial Coin Offerings. Overheen the last duo months, our gegevens has shown that many Americans are excited by cryptocurrency.

Te November, wij commissioned a fresh poll of 564 Americans who have invested te Bitcoin. Our purpose wasgoed to test the current sentiment and future expectations of a specific sub-section: Bitcoin investors. Wij released Part #1 of the poll on November 15th, 2018. On November 26th, 2018 wij released Part #Two of the poll conducted to the same respondents.

What is the average investment amount? What is the typical investment timeline? What about capital gains taxes?

Te this poll, wij worked to response many of thesis questions. Our own analysis can be found below the raw survey results below. Our methodology is provided at the end of this report.

Part #Two – Survey Results ( Published 11/26/17 )

1. Have you invested te other cryptocurrencies besides Bitcoin? Note: Please select all that apply

a. 30.15% of respondents answered “Yes, Ethereum”

b. 15.60% of respondents answered “Yes, Ripple”

c. 21.28% of respondents answered “Yes, another crypto currency besides Ethereum and Ripple”

d. 48.40% of respondents answered “No, spil te I have not invested ter other crypto currencies.”

Two. If possible, would you rather own Bitcoin through an exchange traded fund (ETF) that accurately tracked the actual price of Bitcoin?

a. 49.49% of respondents answered “Yes”

b. 16.31% of respondents answered “No”

c. 34.20% of respondents answered “Hesitant”

Trio. If possible, would you rather own Bitcoin through futures contracts?

a. 42.55% of respondents answered “Yes”

b. 23.22% of respondents answered “No”

c. 34.23% of respondents answered “Hesitant”

Four. Te Five years, do you think Bitcoin will be the largest crypocurrency ter terms of market capitalization?

a. 84.40% of respondents answered “Yes”

b. 15.60% of respondents answered “No”

Five. Do you use a physical device to store your Bitcoin?

a. 45.04% of respondents answered “Yes”

b. 54.96% of respondents answered “No”

6. Do you believe that enlargened regulation and oversight by U.S. government agencies would be a good or a bad thing for the price of Bitcoin?

a. 31.21% of respondents answered “A good thing for the long term”

b. 38.48% of respondents answered “A bad thing for the long term.”

c. 23.40% of respondents answered “Uncertain”

d. 6.91% of respondents answered “Neither good or bad”

7. Do you have numerous Bitcoin wallets?

a. 46.63% of respondents answered “Yes”

b. 53.37% of respondents answered “No”

8. Do you think enhanced presence and participation from financial institutions (ex. Goldman Sachs, JP Morgan) would have a positive influence on the price of Bitcoin?

a. 53.02% of respondents answered “Yes”

b. 23.58% of respondents answered “No”

c. 23.40% of respondents answered “Unassured”

9. Do you believe Bitcoin should be classified spil a commodity or a security?

a. 31.56% of respondents answered “Commodity”

b. 39.54% of respondents answered “Security”

c. 28.90% of respondents answered “Unassured”

Part #1 – Survey Results ( Published 11/15/17 )

1. Which of the following best describes the reason you invested te Bitcoin?

a. 21.81% of respondents answered “Bitcoin is a long term store of value, like gold or silver.”

b. 40.78% of respondents answered “I believe Bitcoin is a world switching technology.”

c. 14.01% of respondents answered “I believe that the price of Bitcoin is too low, and will only go higher.”

d. 15.25% of respondents answered “A friend, family member, or another trustworthy source wooed mij to invest.”

e. 8.16% of respondents answered “I project on using Bitcoin for transactions or purchases, and less of an investment.”

Two. What is the current value ($) of your Bitcoin investment?

On average, respondents reported that the current value of their Bitcoin investment wasgoed $Two,930.85. At the time of the survey completion, the price vanaf Bitcoin wasgoed $6,490.

Three. How long do you project to hold your Bitcoin investment?

a. 16.49% of respondents answered “Less than 1 year”

b. 39.54% of respondents answered “1 to Trio years”

c. 22.34% of respondents answered “Four to 6 years”

d. 9.93% of respondents answered “7 to Ten years”

e. 11.70% of respondents answered “Overheen Ten years”

Four. Do you routinely worry about the technological security of your Bitcoin investment?

a. 44.15% of respondents answered “Yes”

b. 55.85% of respondents answered “No”?

Five. The price of Bitcoin is presently near all-time highs. Have you sold some or all of your Bitcoin investment since investing?

a. 32.62% of respondents answered “Yes”

b. 67.38% of respondents answered “No”?

6. Did you, or do you, project on reporting your transactions(s) on your tax terugwedstrijd spil either a loss or a build up?

a. 64.13% of respondents answered “Yes, I project on reporting build up or loss on my tax terugwedstrijd”

b. 35.87% of respondents answered “No, I do not project on reporting build up or loss on my tax terugwedstrijd”

7. At what price vanaf Bitcoin would you be willing to sell all of your Bitcoin investment?

On average, respondents reported that they would be willing to sell all of their Bitcoin investment at $196,165.79 vanaf Bitcoin. At the time of the survey completion, the price vanaf Bitcoin wasgoed $6,490.

Part #1 – Analysis? &, Graphics (Published 11/15/17)

Why Are Consumers Investing te Bitcoin?

There are a number of reasons that one may determine to invest ter Bitcoin. Te the very first question of our poll, wij desired to find out why consumers are actually investing ter Bitcoin.

The most popular selection, chosen by 40.78 procent of respondents, wasgoed “I believe Bitcoin is a world switching technology.” It is interesting to see that the plurality of Bitcoin investors are backing the technology spil the primary reason for investing. Often, financial professionals speculate that Bitcoin investors are pursuing a big payout.

The 2nd most popular reason why investors liked Bitcoin, chosen by 21.81 procent of respondents, wasgoed for the possibility of long term storage of value of it. Many financial professionals often compare Bitcoin to precious metals like gold, silver, and platinum. For centuries, investors have used precious metals spil a way to diversify away from government backed currency.

Wij were astonished to find that 15.25% of Bitcoin investors reported that the primary reason for investing wasgoed due to a “friend, family member, or another trustworthy source” persuading him or hier to invest. Bitcoin has become a media darling overheen the last few months. With the holidays ahead, Bitcoin is sure to be a conversation at family parties and work events. Bitcoin has a powerful word of mouth factor that has coaxed a significant number of consumers to establish a position.

How Long Will Investors Hold Onto Their Bitcoin?

Wij next asked how long our respondents planned to hold their Bitcoin for.?

Many financial professionals have commented on the speculative nature behind Bitcoin investors. Te our third question wij worked to quantify the investment timeline of Bitcoin investors. Ter our thinking, a brief investment time horizon would be a negative for the price of Bitcoin. Alternatively, a long investment time horizon would be a positive for the price of Bitcoin.

The plurality of respondents, 39.54 procent, are programma to hold their Bitcoin investments for “1 to Trio years.”

Wij thought it wasgoed interesting that 16.49% of Bitcoin investors are programma to hold their investment for “less than 1 year.” This gegevens is clear ter demonstrating that a significant number of investors are te it for the short-term.

On the roll side, wij found that overheen 21 procent of Bitcoin investors are programma to hold their investments for overheen seven years, with 11.70 procent of those programma to string up onto their Bitcoin for overheen Ten years.

Have Investors Sold Any of Their Bitcoin?

Bulls make money, bears make money, and pigs get slaughtered, right?

Te the fifth question of our survey wij wished to see if current Bitcoin investors have taken money off the table.

At the inception of polling, the price of Bitcoin wasgoed trading at all-time highs. At the conclusion of our poll, the price of Bitcoin ?wasgoed still trading near the highs, just slightly lower. It would be logical to assume that the majority of our polled-investors have seen positive voorstelling thus far.

Wij found that about a third, 32.62 procent, of respondents have sold some of their Bitcoin since investing. However, wij found that the majority of investors, 67.38 procent, ?have not sold any of their Bitcoin investments since purchasing.

Have Investors Reported Transactions to the IRS?

?Transacting ter Bitcoin opens up a potentially ingewikkeld tax situation. And, according to the Internal Revenue Service (IRS), “virtual currency is treated spil property for U.S. federal tax purposes. General tax principles that apply to property transactions apply to transactions using virtual currency.”

Wij found that the majority, 64.13 procent, of respondents are programma to report or have already ?reported their Bitcoin transactions to the IRS. Albeit, it wasgoed interesting to see that overheen a third, 35.87 procent, of our respondents are not programma to report their transactions to the IRS.

At What Price Would Investors Sell Their Bitcoin?

Ultimately, wij asked our respondents, “At what price would you ?be willing to sell all of your Bitcoin investment?” Wij found that the average Bitcoin investor would be willing to sell all of his or hier Bitcoin investment at a price vanaf Bitcoin of $196,165.78, harshly 30x the current price of Bitcoin.

Based on the previous responses ter our survey, a large portion of our group of Bitcoin investors are leaning towards the long term potential of holding onto their investment.

Methodology

This poll wasgoed commissioned by LendEDU and conducted online by polling company Pollfish. Te total, 564 American consumers ages Eighteen and up were polled. Wij instructed Pollfish to screen for consumers who invested ter Bitcoin by passing tho’ numerous screener questions. The poll wasgoed conducted overheen a five-day span from November 9th, 2018 to November 13th, 2018.

LendEDU wasgoed not compensated by a third-party for running this survey. LendEDU has no financial relationships with any companies who market Bitcoin or cryptocurrency products.

Spil of 11/14/17, none of the employees on LendEDU’s editorial team own Bitcoin.

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