Survey: 25% of UK Investors Would’ve Made £1M ($1.39M) By Purchasing BTC in 2020
According to a new study from the UK think tank Parliament Street, 25% of UK investors would’ve made £1 million by going all-in on BTC at the start of 2020.
Crypto Investment Option
Parliament Street commissioned independent survey firm Censuswide to poll 2,000 participants about their investment plans in 2021 and overall confidence in digital assets.
The polling firm released their findings in “The Great Cryptocurrency Report” that revealed 25% of investors had been encouraged by the recent BTC bull run to consider betting on the digital coin.
This group of respondents admitted that they would have never considered investing in crypto in the past. However, they have since warmed up to the asset class due to the outsized returns it has provided traders in recent months.
The survey also revealed that 37% of investors view traditional assets such as shares and stocks as too risky right now. They cited the debasement of fiat systems caused by Covid-19 as the reason they plan to seek alternative investments.
Crypto is one of the options these investors plan to look into, as it has shown a disassociation with fiat systems of currency.
Investor Confidence in Crypto Is Rising
Cryptocurrencies have been the main beneficiaries of the travesty caused by Covid-19 induced lockdowns, which have devastated the global economy.
Bitcoin, the leading digital asset with a current market cap of over $1 trillion, has seen exponential growth since Dec 2020, when it beat its previous lifetime high of $20K. The top coin has since gone on to double, then almost triple that record in recent weeks.
As a result, 31% of respondents predicted that the BTC price would hit a £50,000 valuation in 2021, with 18% of investors expecting the digital asset to rally towards $100K.
The study also found that 31% of investors feel they’ve already “missed the boat” as BTC price has snowballed exponentially, making it difficult to invest in at its current valuation.
Nevertheless, 24 percent of respondents believe that the asset is a viable hedge against inflation and has seen a sustainable rally buoyed by institutional interest. They cited Elon Musk’s recent endorsement of BTC as a factor that has given them more confidence to invest in the top crypto.
Some Investors Are Still Cautious of Cryptocurrencies
Despite a significant portion of UK investors changing their attitude towards crypto, a large majority is still cautious about adding it to their investment portfolios.
The Censuswide poll revealed that more than half of respondents (55%) have no interest in entering the crypto market this year. Moreover, 52% admitted that they still prefer to invest in traditional stocks and gold.
Stephen Kelso, Head of Capital Markets at ITI Capital, expressed that many investors are still concerned over crypto volatility. However, he noted that this aspect shouldn’t deter folks from investing in the asset class, which is becoming more relevant as a store of value. Kelso remarked:
“The nomenclature ‘crypto currency’ has deterred many who have perceived it to be anti-establishment rather than how ITI considers it – as the increasingly relevant store of value against the rapidly accelerating debasement of fiat currencies.”
