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Covid-19 is having a positive effect on Bitcoin

Photo of: Nathan VDH
by Nathan VDH

According to a recent survey, the coronavirus pandemic appears to have had a greater effect on U.S. Bitcoin (BTC) buyers than originally thought.

According to an online survey commissioned by Grayscale of 1,000 U.S. retail investors between the ages of 25 and 64 conducted between June 26 and July 12 of this year, 63% of respondents who “had invested in Bitcoin in the previous four months (representing 38% of all Bitcoin investors)” responded that “COVID-19 influenced their decision” to purchase BTC.

When asked if COVID-19 had had an effect on the attractiveness of Bitcoin, nearly four out of ten people said that the health crisis had made the dean of cryptocurrencies “more attractive”, with only 13% of respondents believing that the epidemic had actually decreased the appeal of BTC.

The authors of Grayscale’s survey added that the results correlated with similar findings from JPMorgan (reported by Bloomberg) in August of this year, “some individual investors, especially younger ones, had released cash to invest in Bitcoin in response to the pandemic.

Grayscale researchers also found that nearly 40% of respondents who expressed an interest in Bitcoin considered it a “safe haven investment,” and added that “the largest age group of those who considered it a safe haven was between 35 and 44 years old.

The authors noted: “As faith in traditional safe-haven values is being tested, investors are actively seeking appropriate alternatives.”

Here are some other key findings from the survey:

55% of respondents said they are interested in investing in Bitcoin, up from 36% in 2019.

Of those who reported investing in Bitcoin, 83% made investments in the past year, with the majority of these investments having been made in the last four months.

62% of respondents said they were “familiar” with Bitcoin, compared to 53% in 2019.

More than half (55%) of the investors said they would consider buying BTC “if their financial advisor was able to offer them an investment option directly.

70% of those surveyed said they thought Bitcoin might be vulnerable to cybersecurity threats.