Luno survey reveals global investment habits

• Crypto investors are generally more financially savvy
• Bitcoin buyers are in it for the long run
• ‘Digital gold’ is living up to its name

There has long been an air of intrigue and bewilderment around cryptocurrency investors among the general public. Stereotypes of high-flying technophiles or 30-somethings hammering away at keyboards are amplified as many popular mainstream media outlets remain staunch in their scepticism.

The notion of new and untested (and therefore not to be trusted) has been applied to new technologies and discoveries for as long as time itself. Although there are countless studies, analyses, surveys and contradictory texts about this subject, it seems some opinions are hard to sway. Luno and YouGov recently carried out a survey of over 6,000 crypto investors about their financial habits to better understand whether stereotypes of crypto investors were true, what motivated them and more. The results? Who’s investing in crypto and why may surprise you.

Thoughtful investing

The UK’s Financial Conduct Authority (FCA) estimates that about 2.3 million people in the UK own digital assets of some form. And our research shows that a sizeable chunk of those are doing so for prudent reasons, like saving up for the deposit on a house. Virtually non-existent interest rates and inflation chewing into any funds that savers have squirrelled away has obliged them to look for alternatives. Even precious metals such as gold have not been the safe haven they often proven to be, and so cryptocurrencies with their strong store of value and accessibility have come to the fore.

Future-proofing

Store of value is a term that is bandied around a lot but is rarely described in detail. In essence it describes how something is capable of retaining its value over time. The best and clearest example would be gold, which for centuries has been the commodity to fall back on in hard times. The intention behind all currencies is for them to demonstrate the highest level of value storage so that its holders are confident that what they have is actually worth something. Effects such as inflation and interest rates then affect its actual value.

A question posed about cryptocurrencies from the outset is do they, or could they ever, demonstrate this sought-after store of value characteristic that would make them ‘trustworthy’ for holders? After all, why would anyone put their money into something if the chances of it at least holding its value were slim? Here you can find out how investors are trusting cryptos with their savings and shunning traditional methods as they look to make their money work for them.

Midas touch

The move toward cryptocurrencies has been at different paces around the world, dictated by regulation, media influence, word of mouth and perhaps most decisively of all – financial education. It was always the intention of Bitcoin to break down barriers in the world of finance and be a lifeline to those who have been let down or outright sidelined by the way the world economy works, and some cultures have embraced the benefits more quickly than others. Profit-hungry day traders have reaped the rewards of its volatility, but so too have those in regions where their own currency, banks and other financial institutions have experienced volatility and mistrust as well.

It is often good to look beyond one’s four walls and see how different groups of people are reacting to new developments. It can inspire and provide guidance on how we too could embrace innovation or indeed learn from the experiences of others. The survey also revealed some interesting traits and trends in the different cultures and countries analysed on how they are using cryptocurrencies, and what they’re attitudes to digital currencies look like.