SEC-registered broker-dealer and investment advisor, SharesPost, has announced the results of its mid-year survey on cryptocurrency and blockchain. The responses were collected from nearly 2,500 private consumers and over 500 accredited individual and institutional investors. Their responses indicate that consumers maintain a bullish attitude regarding the future of cryptocurrency and blockchain, while investors are cautiously optimistic.
Consumers and Investors Maintain Positive Outlook, Despite Price Decline
The 60% decline in the cryptocurrency valuation this year does not seem to discourage consumers from buying and holding digital currencies. In fact, the survey indicated that 72% of consumers plan to buy and hold a larger quantity of cryptocurrency during the next year. By comparison, 59% of investors stated that they consider increasing their holdings.
The majority of respondents indicated a bullish attitude towards the future of cryptocurrency. 66% of the consumers and 57% of the investors taking part in the SharesPost survey stated that they expect the value of the cryptocurrency to grow during the next 12 months.
Bitcoin, Ethereum and XRP Lead the Popularity Top
When it comes to cryptocurrencies they hold or plan to hold, both consumers and investors indicated Bitcoin (BTC) as their top pick, followed by Ethereum (ETH), Ripple (XRP) and Litecoin (LTC). These currencies are credited with the highest potential for long term success.
Investors have a significantly improved outlook on Bitcoin – their positive sentiment has increased from 48% to 78%. As for their third favourite digital currency, XRP is preferred over Litecoin and Bitcoin Cash.
The Managing Director and Head of Research at SharesPost, Rohit Kulkarni, commented on these survey results:
“Based on our survey, crypto investors haven’t lost faith and are planning to buy more. Importantly, this survey indicates that this correction is separating long-term believers from short-term day traders. Investors remain bullish on Bitcoin and Ethereum over the next 18 months because they are the leading digital currencies globally. Both enjoy relatively low correlation to other asset classes and can be an ideal way for investors to diversify a portfolio of stocks and bonds.”
Blockchain Technology on the Rise in Business Implementations
Blockchain technology is also experiencing a growing adoption rate at the business level. 32% of accredited investors stated that their employers are planning to implement blockchain technology in their companies in the near future. A growing need for the technology is also demonstrated in the consumer responses, as nearly half of them expressed their belief that their employers are planning to adopt blockchain – a 12% increase compared to the previous SharesPost survey at the beginning of 2018.
Blockchain will Disrupt Financial Services
Both investors and consumers believe that Blockchain will disrupt financial services, mainly money transfer, payments, and asset management sectors. More than half of both groups of respondents (58% of investors and 55% of consumers), are bullish about Blockchain’s potential for money transfers.
Not (Just) Yet Ready to Become Mainstream
Despite the optimistic opinions expressed by the survey respondents, they do not believe that cryptocurrency and blockchain are ready to go mainstream. Using the year 2020 as a milestone, the SharesPost survey indicated that the accredited investors’ expectations for the mainstream adoption of crypto and blockchain dropped from 51% in the previous survey to 27%, while consumers’ expectations dropped from 42% to 37%. More people now feel that the mainstream crypto and blockchain adoption will be delayed until 2025.