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Please note: This article was updated on November 26th, 2017 with Part #2 of the November survey. The Part #2 survey of Bitcoin investors was conducted to the exact same grouping of 564 respondents.
The price of Bitcoin has increased dramatically since the onset of the year. The digital currency currently trades at $9,349 (as of 11/26), up from $997 at the start of 2017.
In September, LendEDU asked 1,000 Americans a series of questions about Bitcoin as an investment opportunity and as a currency. In October, we asked 1,000 Americans a series of questions related to Ethereum, Ripple, and Initial Coin Offerings. Throughout the last few months, our information has indicated that lots of Americans are excited by cryptocurrency, and also have invested through some of the highest bitcoin exchanges.
Our goal was to examine the current opinion and future expectations of a specific sub-section: Bitcoin investors. On November 26th, 2017 we released Part #2 of this questionnaire ran to the very same respondents.
What is the average investment amount? What is the normal investment timeline?
In this poll, we labored to answer a number of these questions. Our own investigation can be located beneath the raw survey results under. Our methodology is offered at the conclusion of the report.
Part #2 — Research Results ( Released 11/26/17 )
1. Have you ever invested in different cryptocurrencies besides Bitcoin? Note: Please select all that apply.
B. 15.60percent of respondents answered "Yes, Ripple"
C. 21.28percent of respondents answered "Yes, another crypto currency besides Ethereum and Ripple"
D. 48.40percent of respondents answered "No, as in I have not invested in additional crypto currencies. "
2. If possible, would you rather possess Bitcoin via an exchange traded fund (ETF) that accurately monitored the true price of Bitcoin?
A. 49.49percent of respondents answered "Yes"
B. 16.31percent of respondents answered "No"
C. 34.20percent of respondents answered "Unsure"
3. If possible, would you rather possess Bitcoin through futures contracts?
A. 42.55percent of respondents answered "Yes"
B. 23.22percent of respondents answered "No"
C. 34.23percent of respondents answered "Unsure"
4. In 5 years, do you believe Bitcoin will be the most significant crypocurrency in terms of market capitalization?
A. 84.40percent of respondents answered "Yes"
B. 15.60percent of respondents answered "No"
5. Do you use a physical device to store your own Bitcoin?
A. 45.04percent of respondents answered "Yes"
B. 54.96percent of respondents answered "No"
6. Do you feel that increased regulation and oversight by U.S. government bureaus are a great or a bad thing for the price of Bitcoin?
A. 31.21percent of respondents answered "A good thing for the long-term "
B. 38.48percent of respondents answered "A bad thing for the long run. "
C. 23.40percent of respondents answered "Unsure"
D. 6.91percent of respondents answered "Neither good or poor "
7. Have you got multiple Bitcoin pockets?
A. 46.63percent of respondents answered "Yes"
B. 53.37percent of respondents answered "No"
8. Do you believe greater presence and involvement in financial institutions (ex. Goldman Sachs, JP Morgan) would have a positive effect on the price of Bitcoin?
A. 53.02percent of respondents answered "Yes"
B. 23.58percent of respondents answered "No"
C. 23.40percent of respondents answered "Unsure"
9. Do you think Bitcoin ought to be classified as a product or a safety?
A. 31.56percent of respondents answered "Commodity"
B. 39.54percent of respondents answered "Security"
C. 28.90percent of respondents answered "Unsure"
Part #1 — Research Results ( Released 11/15/17 )
1. Which of the following best describes the reason you invested in Bitcoin?
A. 21.81percent of respondents answered "Bitcoin is a long term store of value, like gold or silver. "
B. 40.78percent of respondents answered "I think Bitcoin is a world altering technologies. "
C. 14.01percent of respondents answered "I think that the price of Bitcoin is too low, and can only go higher. "
D. 15.25percent of respondents answered "A friend, relative, or another trusted source persuaded me to invest. "
E. 8.16percent of respondents answered "I intend on utilizing Bitcoin for trades or purchases, and less of an investment. "
On average, respondents reported that the current value of their Bitcoin investment was 2,930.85. In the time of this survey conclusion, the price per Bitcoin was 6,490.
3. How long do you intend to maintain your Bitcoin investment?
A. 16.49percent of respondents answered "Less than 1 year"
B. 39.54percent of respondents answered "1 to 3 years"
D. 9.93percent of respondents answered "7 to ten years"
E. 11.70percent of respondents answered "Over 10 years"
4. Do you routinely worry about the technological safety of your Bitcoin investment?
A. 44.15percent of respondents answered "Yes"
B. 55.85percent of respondents answered "No"
5. The price of Bitcoin is now near all-time highs. Have you sold some or all of your Bitcoin investment since investing?
A. 32.62percent of respondents answered "Yes"
B. 67.38percent of respondents answered "No"
6. Can youdo you, plan on coverage your transactions(s) in your tax return as either a loss or a profit?
A. 64.13percent of respondents answered "Yes, I intend on reporting profit or loss on my tax return"
B. 35.87percent of respondents answered "No, I don’t plan on reporting profit or loss on my tax return"
7. At what price per Bitcoin would you be willing to sell all of your Bitcoin investment?
In the time of this survey conclusion, the price per Bitcoin was 6,490.
Why Are Consumers Investing in Bitcoin?
There are a number of reasons that one may opt to invest in Bitcoin. From the first question of our poll, we wanted to find out why customers are actually investing in Bitcoin.
The most popular choice, chosen by 40.78 percent of respondents, was "I think Bitcoin is a world altering technologies. " It is interesting to understand that read full report the plurality of Bitcoin investors are financing the technology as the principal reason for investing.
The second most popular reason investors liked Bitcoin, chosen by 21.81 percent of respondents, was to get the chance of long term storage of value of it. Many financial professionals often compare Bitcoin to precious metals like gold, silver, and gold. For centuries, investors have utilized valuable metals as a way to diversify away from government-backed currency.
We were surprised to discover that 15.25percent of Bitcoin investors reported that the key reason for investing was because of a "friend, relative, or another trusted source" compelling him or her to invest. Bitcoin is now a media darling throughout the past couple of months. With the holidays ahead, Bitcoin is sure to be a dialogue at family parties and perform occasions. Bitcoin has a powerful word of mouth factor that has convinced a substantial number of customers to establish a position.
We asked how long our respondents planned to maintain their Bitcoin for.
In our third issue, we labored to measure the investment timeline of Bitcoin investors. In our thinking, a short investment time horizon would be unfavorable for the price of Bitcoin. Alternately, a long investment time horizon will be positive for the price of Bitcoin.
The plurality of respondents, 39.54 percent, are planning to maintain their Bitcoin investments for "1 to 3 years. "
We thought it was interesting that 16.49percent of Bitcoin investors are planning to hold their investment for "significantly less than one year. " This information is clear in demonstrating that a substantial number of investors are in it for your short term.
On the reverse side, we discovered that over 21 percent of Bitcoin investors are planning to hold their investments for over seven years, with 11.70 percent of those planning to hang onto their Bitcoin for over 10 years.
Have Investors Sold Any of Their Bitcoin?
From the question of the survey we wanted to determine if current Bitcoin investors have obtained money off the table.
In the inception of polling, the price of Bitcoin was trading at all-time highs. In the finish of our poll, the price of Bitcoin was still trading near the highs, just slightly lower. It would be logical to assume that the majority of our polled-investors have observed positive performance thus far.
We discovered that roughly a third, 32.62 percent, of respondents have sold some of their Bitcoin since investing. But, we discovered that the vast majority of investors, 67.38 percent, have not sold any of their Bitcoin investments because buying.
Have Investors Reported Transactions to the IRS?
Transacting at Bitcoin opens a potentially intricate tax situation. And, according to the Internal Revenue Service (IRS), "virtual currency is treated as property for U.S. federal tax purposes. General tax rules that are applicable to property trades apply to trades utilizing virtual currency. "
We discovered that the bulk, 64.13 percent, of respondents are planning to report or have reported their Bitcoin trades to the IRS. Although, it was interesting to observe that over a third, 35.87 percent, of our respondents are not likely to report their trades to the IRS.
Finally, we asked our respondents, "At what price would you be willing to sell all of your Bitcoin investment? " We discovered that the normal Bitcoin investor will be willing to sell all of his or her Bitcoin investment at a price per Bitcoin of $196,165.78, roughly 30x the current price of Bitcoin.
According to the last responses in our survey, a large portion of our team of Bitcoin investors are leaning towards the long term possibility of holding onto their own investment.
This poll was commissioned by LendEDU and conducted online by polling company Pollfish. We instructed Pollfish to screen for customers who invested in Bitcoin by passing though multiple screener questions. The poll was conducted over a five-day span from November 9th, 2017 to November 13th, 2017.
LendEDU was not paid by a third-party for running this survey. LendEDU has no financial connections with any businesses who market Bitcoin or cryptocurrency products.
As of 11/14/17, none of the workers on LendEDU’s editorial staff own Bitcoin.