It's no secret that cryptocurrency has become a buzzword of sorts. Everyone is talking about Bitcoin billionaires, talking about how to invest in Bitcoin, and even saying that blockchain will become one of the greatest inventions that man has ever known.
Over recent years, we have seen a huge boom in cryptocurrency investing apps and blockchain-related resources. All things considered, it's not surprising that many people automatically assume that the majority of people out there have hopped on the blockchain bandwagon.
As much as you think you know how many people invest in cryptocurrency, we're willing to bet that you don't. Here's the scoop about why people overestimate the number of blockchain investors on the scene.
With all the press about blockchain currencies, it's safe to say that most people have heard of it at least once. So, you probably think that a good amount of investors have plunked down cash on crypto, too, right?
According to a recent poll, only 8 percent of Americans invest in cryptocurrency of any form. This poll included Bitcoin, Ethereum, and fringe coins like Dogecoin.
Bitcoin has the most investors, with around 5 percent of the US population.
Ethereum, which is poised to overtake Bitcoin in market cap, is only carried by about 2 percent of all Americans. Ripple, another major name in the cryptocurrency world, is owned by less than 1 percent of the population.
If that sounds like few people invest in cryptocurrency, you're correct. Crypto is still a fringe investment when compared to other investment routes.
Many people assume we'll eventually see more people invest in cryptocurrency later on, but that's not necessarily true.
Though cryptocurrency has shown itself to be profitable, not many people are really into the idea of buying it. Around 40 percent of all Americans openly admitted that they had no interest to invest, or just didn't see cryptocurrency as a profitable route for them.
This leaves around 42 percent of respondents interested in possibly investing in the future. That's not a bad number, but still isn't impressive considering how wildly successful crypto is reputed to be.
If cryptocurrency were really as popular as people assume it is, it would have a massive market cap that would make most small countries blush. This would mean having a market cap of trillions of dollars.
As of right now, the total market capitalization of all cryptocurrencies currently rests at $400 billion. This is less than Apple's market cap of $900 billion and around half of Amazon's $880 billion. That's really not that big at all!
To be fair, there's a lot of reason to be skeptical of crypto.
There's a lot of risk in cryptocurrencies due to the lack of regulation, the high rate of theft, and the lack of insurance for cryptocurrency wallets. Considering how many issues investors have had, it's easy to see why crypto is seen as one of the most dangerous investments you can make.
Anyone looking for ways to invest like Warren Buffett will tell you that it's not a good trade to make if you are a value investor. Until cryptocurrency stabilizes, you're not going to see many investors take that leap.
35 percent of non-investors cited high risk as the reason they said no to crypto. Until the risk decreases, we won't see them getting interested in investing.
There's also the issue that most people aren't educated about cryptocurrency.
Most people just aren't that into tech, plain and simple. People still have a hard time working their phones from time to time, so why would we expect the entire US population to understand tech-heavy concepts that still involve a lot of algorithms in raw form to get done? We can't!
18 percent of people still think crypto is a scam, while another 27 percent just don't want to learn enough to invest. It's clear that crypto is an education-exclusive thing, even if you use apps to invest in them.
Until these issues are solved, chances are that Bitcoin investing won't become a mainstream issue.
Crypto is definitely a "demographic" thing.
If you want to see a lot of people invest in cryptocurrency, look to people who work in STEM fields like information technology, finance, or software engineering.
Most cryptocurrency investors are also more educated, are interested in personal finance, and are more well-off on average.
Why does it seem like everyone is investing, then?
The reason why it seems like a lot more people invest in cryptocurrency is due to the press surrounding it. Words are powerful, and we now read more of them than ever before.
Cryptocurrency is a very novel development, and that makes it a newsworthy item. News groups love being on the cutting edge of tech, and that gave crypto a lot of clout.
Additionally, it's important to remember that crypto is an internet-based phenomenon. Since it started on the internet, it's way easier to find netizens talking about it.
Oddly enough, cryptocurrency has a lot of celebrity sponsors too.
Being a star-studded investment definitely helps improve word of mouth, and that's been the case with a lot of cryptocurrencies. Though a lot of billionaires and Wall Street gurus have spoken out against digital currency, a lot of celebrities have managed to step up in favor of crypto.
Some of the bigger names among cryptocurrency investors include Ashton Kutcher, Mike Tyson, DJ Khaled, Paris Hilton, and Donald Glover—just to name a few.
The illusion is there, but if you invest, you should know you're one of the few.
Though Bitcoin may seem like it's ubiquitous, it's really not. Comparatively few people invest in cryptocurrency compared to people who invest in the stock market.
If you invest in Bitcoin, raise a glass to yourself. You're one of the few, the proud, the early adopters of the future—and you should be proud of that.