How Long Do Investors Plan to Hold Onto Bitcoin?
Did investors buy bitcoin because it was trendy, or are they committed to cryptocurrency for the long haul?
As in any new and rapidly-growing market, this kind of investor intent and the overall feeling of market sentiment matters a lot. That’s because there are no historical averages or ratios to apply as baselines for value, and if things head south there is always the possibility of a mass exodus.
Buy, Hodl, and Prosper?
Today’s infographic comes to us from Raconteur, and it helps map out the future price expectations of crypto investors, along with how long they plan to hold onto their digital assets.
But before we get to that, let’s look at why investors bought into the market in the first place:
| Reasons for buying Bitcoin: | Share |
|---|---|
| I believe Bitcoin is a world-changing technology | 41% |
| A long-term store of value like gold or silver | 22% |
| A friend, family member, or trusted source convinced me | 15% |
| The price is low and will go higher | 14% |
| For transactions or purchases and less of an investment | 8% |
When did people get into the market?
More than 60% of investors got involved in cryptocurrency in 2017, and 56% of investors that hold crypto plan to buy more in the next 12 months.
Future Expectations
What do people expect crypto prices to do in the future, and how long are investors willing to hold?
According to a survey of 1,800 crypto investors around the world at the end of March 2018, a whopping 77.9% see the crypto market gaining more than 30% in value over the next three years.
Meanwhile, another poll from November 2017 asked investors how long they will hold onto their assets:
| How long will investors hold onto Bitcoin? | Share |
|---|---|
| >10 years | 12% |
| 7-10 years | 10% |
| 4-6 years | 22% |
| 1-3 years | 40% |
| <1 year | 16% |
Only 16% of respondents planned to sell within the next year, and 44% of respondents said they’d hold onto Bitcoin for four or more years.
Concerns About Exchanges
Exchanges are the lifeblood for buying or selling cryptocurrency – so what are the major concerns held by investors about them?
| Concerns about crypto exchanges | Share |
|---|---|
| Security | 40% |
| High trading fees | 37% |
| Lack of liquidity | 36% |
| Response time from support team | 33% |
| Lack of crypto pairs | 22% |
| User friendliness and poor platform interface | 21% |
| High withdrawal fees | 18% |
| None | 9% |
Security continues to be a topical issue for traders, which is not surprising since it’s estimated that $1.2 billion of crypto has been stolen since 2017. Other issues like high trading fees and the lack of liquidity and lack of currency pairs also poll high.
