Crypto & Digital Assets
Bitcoin Demographic Trends: Propensity To Buy Bitcoin Increases Despite The Bear Market
02 May 2019
The Bitcoin is rising at a rapid pace and it seems that the recent crypto winter has done virtually nothing to stunt its growth. In fact, quite the opposite. As a new study, which just came out from the United States, shows a significant rise in all categories including awareness, familiarity, perception, conviction, propensity to purchase, preference to other assets, and of course ownership.
The study, that was conducted online by The Harris Poll, on behalf of Blockchain Capital, from April 23–25, 2019 among 2,029 American adults, compares a survey that was done in October 2017, during the height of the bull market, to a more recent survey from April 2019, a time where bitcoin and major cryptocurrencies were deep into a bear market. Nonetheless, bitcoin continued to be considered a trend while its overall perception was still positive by participants. What was even more intriguing though was that in all of the above-mentioned categories it was the young who are leading the way.
“For context and because it’s material in considering the results, the survey in October 2017 was conducted in a bull market — Bitcoin was up over 800% YoY — whereas the most recent survey, in April 2019, was conducted in a bear market — price was down roughly 75% from all-time highs,” said expert Spencer Bogart about the research.
The expert also pointed out that the results highlight Bitcoin as a demographic mega-trend led by younger age groups. The only area where older demographics matched younger demographics was awareness: Regardless of age, the vast majority of the American population has heard of Bitcoin.
Given the fact that the surveys were carried out in two radically different scenarios, It would be easy to suspect that the difference in market environment between the two surveys would have a negative impact on Bitcoin sentiment in the most recent survey. However, and despite the bear market, the data shows that Bitcoin awareness, familiarity, perception, conviction, propensity to purchase and ownership all increased/improved significantly — dramatically in many cases.
Bitcoin Demographic Trends Key Notes:
- Awareness: The percentage of people that have heard of Bitcoin rose from 77% in October 2017 to 89% in April 2019.
- Familiarity: The percentage of people that are ‘at least somewhat familiar’ with Bitcoin rose by nearly half — from 30% in October 2017 to 43% in April 2019.
- Perception: The percentage of people whom ‘strongly’ or ‘somewhat’ agrees that ‘Bitcoin is a positive innovation in financial technology’ rose 9 percentage points — from 34% in October 2017 to 43% in April 2019.
- Conviction: The percentage of people that ‘strongly’ or ‘somewhat’ agrees that ‘most people will be using Bitcoin in the next 10 years’ rose 5 percentage points — from 28% in October 2017 to 33% in April 2019.
- Propensity: Despite the bear market, the percentage of people that indicated they are ‘very’ or ‘somewhat’ likely to buy Bitcoin in the next 5 years rose by nearly half — from 19% in October 2017 to 27% in April 2019.
- Ownership: In total, 9% of the population owns Bitcoin — including 18% of those aged 18–34 and 12% of those aged 35–44.
Among all the trends disclosed in the survey, one stands over the other ones. The propensity to buy bitcoin despite the bear market has grown with people more likely to buy it in the near future. In fact, the percentage of people that indicated they are ‘very’ or ‘somewhat’ likely to buy Bitcoin in the next 5 years rose by nearly half — from 19% in October 2017 to 27% in April 2019.
“Younger demographics appear most inclined to purchase Bitcoin: 42% of those aged 18–34 said they are ‘very’ or ‘somewhat’ likely to purchase Bitcoin in the next 5 years — up 10 percentage points from 32% in October 2017,” added the expert.
Here’s one chart from the report that demonstrates this perfectly.
It’s also helpful to consider how people think about Bitcoin relative to other investable assets. It’s becoming increasingly likely that the next generation will have a much freer and fairer economy. So that’s certainly something to strive for.
