Nearly 40% of crypto investors plan to buy crypto in the next year


Crypto investors maintain optimism in 2023 despite headwinds in the current year. Multiple motivating factors may support investor enthusiasm. But again, the rules remain a major talking point.

2022 has been a tumultuous year for the financial markets. As of today, stocks are down, bonds are down, gold is down, crypto is down, and all eyes are cautiously but hopefully looking at 2023. Amid all the chaos and bankruptcies, crypto investors seem cautiously optimistic about crypto’s turn in 2023. Supporters believe that, so far, it is the best performing asset in all of recorded history.

For example, year-to-date annual gains in technology stocks have been around 30-50%. Cryptos, on the other hand, have fared much better. While these benefits are expected to wane as the network becomes saturated, it is still considered to be in its infancy.

Bitcoin Total Yearly Return YTD
Source: Outrageous Interest

Adoption can also be exemplified by AI-powered ChatGPT, which went from zero to one million users within a short period of time.

crypto investor optimism

Looking back at 2022, people are angry and confused. Many of these people came late when prices were high, and believed that the markets would only go up. These investors took a lot of risk by resorting to heavy leverage. They put their trust in crypto exchanges like FTX, losing thousands of dollars worth of crypto. As investors resort to legal battles to recover these losses, they are also looking at 2023 as a turnaround year.

Blockchain.com exclusively polled 40,000 crypto investors globally to gain insight on crypto confidence in 2023, indicating a relatively positive sentiment towards crypto investment next year. The report was exclusively shared with BeInCrypto.

Crypto Confidence: A Survey on Investor Sentiment
Source: blockchain.com

41% of respondents invested in crypto in 2022, and 40% intend to buy crypto in 2023. Geographically, Africans had a fairly positive attitude towards crypto. 50% of Nigerians are buying crypto this year and 46% plan to do so next year. In Ghana, the numbers were 44% and 60%, respectively.

Italians, on the other hand, showed great apprehension towards crypto, with only 31% purchasing crypto this year and 29% planning to buy it next year.

driving force

One thing that keeps investors optimistic is the transparency of the crypto network. While many investors faced losses, 2022 can be said to be one of the worst years for cryptocurrencies. Impressive for major coins like bitcoin and ethereum was the fact that both still needed to catch up on operations. No transaction was interrupted.

Running parallel to the financial crisis of 2007–08, markets froze and banks stopped processing. They needed to find out where the counterparty risk was. Markets froze in the absence of information and transparency, and the Federal Reserve had to intervene. It was a near-death experience for the global financial system. It hasn’t been a near-death experience for crypto. It is highlighting how important transparency is. One can see every transaction on the blockchain and funds can be easily tracked.

Another factor indicating a positive year for crypto is regulators’ acceptance of the importance of decentralized networks. The latest SEC commissioner, Jaime Lizarraga, highlighted how important decentralization and transparency are and the lessons learned from this crisis. Therefore, from a regulatory perspective, focusing on those two variables may be perfect for the crypto asset ecosystem in 2023.

A third indicator pointing to the early stages of the crypto industry would be to compare the size of the industry with other financial assets. With the decline from crypto at its peak, the crypto asset ecosystem shrunk from $3 trillion to nearly $800 billion. For context, Apple is a $2.30 trillion company—just one stock.

It gives a sense of how early crypto investors still are and how unlikely it is that what has happened in crypto could lead to a systemic financial crisis.

caution signs

While there are many positive indicators, investors remain cautious about international and national legislation. The International Organization of Securities Commissions is preparing a framework for the crypto sector. It is too early to predict how well the roadmap will hold for the industry as the recommendations are not due until the end of 2023.

Investors are cautious about putting in too much money before the regulations come in. Separately, bitcoin ETF legislation is on the way, but could take up to two years. A spot ETF would hold actual BTC, which could help boost the market by giving more people more exposure to bitcoin.

South Africa, on the other hand, has strict new laws in the pipeline for 2023 to classify bitcoin as a financial asset. This would mean that it is not seen as a currency, and its use as such would be discouraged. The European Union has started drafting its first set of important crypto laws. They are factoring a number of things into this, including the need for stablecoins to have more massive reserves to remain legal. Back in the US, stablecoins are also under a microscope, and legislators are trying to force through a new bill.

There are too many factors to consider in order to forecast the market with certainty. However, the general sentiment seems optimistic. With majority considering 2022 as rock bottom and things going uphill from 2023 onwards.

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