Confidence in the success of cryptocurrencies unshaken, new insights from Binance Research reveals
News

Confidence in the success of cryptocurrencies unshaken, new insights from Binance Research reveals

Saudu Clement
Saudu Clement

According to new findings from Binance Research, nearly 100% of cryptocurrency users around the globe are confident that the tech is here to stay. This is in contrast to what some government officials have said. The Bank of England Governor, Andrew Bailey, had earlier said that cryptos would not last. There is a hoard of crypto enthusiasts who do not feel the same way.

The 2021 Global Crypto User Index from Binance Research reviews the profile of crypto users, their attitudes, and preferences. It is the first-ever report of such magnitude to shed light on the behavior and motivations of a growing crypto audience. The study involved 61,073 recipients across 178 countries and lasted from September 15 to October 25.

That being said, a whopping 97% of those surveyed expressed their confidence in cryptocurrencies. A further breakdown of this figure shows that 52% see digital assets as a means of income, while 15% consider it their primary source of income. In general, about 67% of respondents invest in cryptos as a serious business.

As per the reasons why people invest in cryptos, 55% of those surveyed want to own cryptocurrencies as part of their long-term investment strategy. Another 38% are in it due to growing distrust for traditional financial systems. The third main reason is for short-term trading opportunities, with 31% of respondents ticking this box.

Commenting on the research, a spokesperson from the firm said:

We are seeing accelerated adoption of cryptocurrencies as more major players show support and provide additional channels for people to invest. It’s increasingly important for us to understand crypto users as well as their corresponding attitudes and behaviors.

He added:

The aim of our 2021 Global Crypto User Index is to understand the commonalities and differences between retail crypto users across the different profile types, as well as across different countries and markets.

The report also confirmed that Bitcoin remains the king of cryptocurrencies. The digital gold currently enjoys over 62% market dominance. According to the report, 65% of users held Bitcoin, with 30% of Bitcoin owners allocating between 1% and 20% of their overall portfolio to Bitcoin.

Interestingly, while 21% of respondents felt the using digital assets as a medium of exchange was not a priority; actual usage of around 38% suggests that penetration may be more than what was anticipated. A significant percentage (39%) of users buy and “hodl” crypto, while 22% divert them into staking and lending protocols. Only 11% of those surveyed use cryptos for payments.

Another interesting revelation (which is quite obvious) from the report is the fact that the DeFi sector is picking up speed. 66% of users noted that they are using one form of DeFi application or the other, with Southeast Asia leading in the number of users. Meanwhile, most individuals store their digital assets on centralized exchanges.