Grayscale states 5% of Americans own crypto amidst rising inflation
A recent survey from Grayscale has revealed that one in every four American investors hold Bitcoin. The survey further shows that 55% of the American investors who hold Bitcoin made their purchase in the last year.
The data collected by the largest digital asset manager globally proves that the US is becoming a major hub. Besides trading, the US is also leading in Bitcoin by having the highest mining hash rate.
25% of Americans own Bitcoin
Bitcoin has had several ups and downs this year. Despite the current dips, Bitcoin’s price is still 70% higher than it was trading in January 2021. This year, Bitcoin has not only amassed a lot of retail investors, but institutional investors have also jumped on the bandwagon.
The growing rate of institutional adoption could be attributed to the rising Bitcoin investments in the US. Data from Grayscale shows that 26% of US residents have Bitcoin holdings.
The survey also shows that 60% of respondents stated that they are interested in investing in cryptocurrencies, which shows that the number of crypto holders will increase in the coming years.
Besides the growing institutional adoption, the rise of Bitcoin holders in the US has also been attributed to factors such as inflation and the Covid-19 pandemic. Moreover, the rising adoption of Bitcoin in the US shows that the primary cryptocurrency was being used more as a store of value than a means of payment.
Commenting on the survey results, the CEO of Grayscale Investments, Michael Sonnenshein, stated, “the 2021 Bitcoin Investor Study results confirm that more investors see long-term value in adding Bitcoin and digital currencies to their investment portfolio.”
The survey results also show that the young population was not the only one interested in cryptocurrencies, as the number of crypto investors aged between 55 and 64 years increased to 46% in 2021.
Inflation driving crypto adoption
The rate of crypto adoption in the US currently sits at record highs, given that the country is currently facing the highest level of inflation in 30 years. The level of inflation in the US sits at 6.2%, which was last recorded in the 1980s.
The depreciating value of the US dollar has led to people looking for alternatives, and Bitcoin and other cryptocurrencies have become top choices for storing value. While Bitcoin is volatile, it does not suffer from inflation, as its supply is capped at 21 million coins, making a better hedge against inflation.
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