Research Shows Investors in Emerging Countries Want More Crypto Than Developed Countries
Emerging market investors seem unwilling to miss the cryptocurrency bandwagon like they did with internet stocks. A study conducted among investors in Asia-Pacific and Latin American countries found that 75% of them want more exposure to cryptocurrencies because most of them believe in the future of these currencies.
The study was conducted by Toluna researchers, a firm that analyzes consumer behavior. “9,000 investors from 17 different markets surveyed about their feelings towards cryptocurrencies, including their investment habits, their perceptions of individual consumers and their future purchase intentions.”
The conclusion is relentless: investors in developing countries are very keen on crypto products. According to the survey results, 75% of investors in emerging markets plan to increase their cryptocurrency investment allocations, compared to 57% in developed markets.
Further, the Toluna researchers point out that while investors in developed countries see cryptocurrencies as nothing more than a fad, those in emerging countries perceive them as a good long-term investment.
At the level of emerging countries, they are 34% to believe in the potential of cryptocurrencies against only 14% of developed countries. Added to this, 41% of consumers in emerging markets say they have invested in cryptocurrencies, compared to 22% in developed markets.
Lack of Cryptocurrency Education is a Problem
Definitely, the education deficit is the common denominator of almost all studies conducted among investors. Toluna researchers observed the same problem: cryptocurrency fundamentals are a bit hard to pin down, investors reported. While 61% of global consumers say they have heard of cryptocurrencies, only 23% say they know about them.
Apart from the lack of education, the risks associated with cryptocurrencies also prove to be a hindrance to investment. Among the 9,000 investors surveyed, many say that cryptocurrencies are volatile and risky assets. 45% of them believe that this new asset class should not be very successful.
This is why investors have proposed 6 main points that could allow investors or consumers to devote themselves to cryptocurrencies.
- ● Competitive transaction fees.
- ● Accurate exchange rates
- ● Fast transaction speeds.
- ● More cryptocurrency coin options to choose from.
- ● Tutorials and a simple interface.
- ● Secure system
Generation Z is the category of investors that are more exposed
There is another salient point in Toluna’s survey: Young Gen Zers are part of the segment of investors who are much more into cryptocurrencies. We can read in the report:
● 42% of consumers aged 18-24 (Gen Z) in emerging markets say they invest in cryptocurrencies, compared to 38% in developed markets which closely follow them.
● 44% of consumers aged 25-34 (Millennials) in emerging markets say they invest in cryptocurrencies, compared to 37% in developed markets.
● Only 21% of 57-64 year olds (Baby Boomers) plan to invest in cryptocurrencies in the next year, and 18% plan to do so in the coming years.
A phenomenon that is pushing some companies to review their position on cryptocurrencies. Lately, the CEO of eBay said his company could accept digital currencies with a view to appealing to Gen Z and millennials.