The Majority of Cryptocurrency Investors Understand Little about the Asset
Cryptocurrency Professional – Mark
Bitcoin (BTC) could become one of the largest and most influential commodities in history. The currency has reached historic heights and has recently gone past the $50,000 mark once again, but it has now made a minor dip that has taken it back down to the $48,000 mark. Even then, the asset has soared by more than $30,000 in the last few months alone.
Apparently, people are ready to get their hands on it. For something growing so fast, people want to take benefit of the money, but it seems like at the present time the only thing that drives large Bitcoin transactions is fear of missing out (FOMO). The irony is that many investors and buyers are not too familiar with the technological side of Bitcoin, so they are purchasing something that they do not fully understand.
Survey Firm Cardify did a survey targeting more than 700 different investors around early to mid-February. Throughout that time, the price to buy and sell Bitcoin jumped up more than $10,000, increasing from $37,000 to around $47,000. As per survey results, not even 17% of all those who participated in the study fell into the "fully understood Bitcoin " group. However, almost 34% fell into the "zero knowledge" band.
During the previous year, Bitcoin was also on a run, and by the end of the 12 months it had hit almost $20,000 per unit. The next year, within a couple of months, Bitcoin had lost half of its worth. By the summer, it was priced in the $6,000 range, and by the end of the year, every Bitcoin was worth just around $3,500.
Price fluctuations are a big concern for many retails clients. With instability of price, users who don’t monitor this movement could possibly see a lot of their money disappear without notice, but this could also be said for the increase in value.