Crypto still has a long way to go mainstream, and many investors still view it as a get-rich-quick scheme. A recent survey shows that over 70% of crypto investors believe they can become billionaires with their investment. This is a huge number indicating the optimism about crypto among its investors. Do note that this high level of optimism is most among Americans. The overall results of the survey were around 44%.
What do investors expect of their crypto investment?
Even though Bitcoin and many other cryptocurrencies are pitched as a replacement for the current banking system, using them for payments is still rare. People who buy crypto expect it to reap high gains in the future. A recent survey that included 1,989 US citizens showed that it is mostly the millennials and the GEN Z who invest in crypto and believe they could be billionaires someday. It goes in line with the idea that crypto is still more popular among the younger generations.
However, believing that one can become a billionaire just with their crypto investment is too optimistic. Why so? A 2022 report by Forbes shows that there are only 735 billionaires in the US, and even if we consider the entire world, the number isn’t much higher. Plus, most investors are not in crypto because of its use cases and only care about quick returns, which we have seen in the past 2 years.
In the US, only 13% of the total population own crypto however, this number is much higher at 20% for Genz Z and 23% for Millenials. Again the data shows that they are much more easily swayed by a new asset class that seems to have the potential to reap massive rewards in the next decade.
FOMO is another factor that is driving crypto investments. For many, they just do not want to lose out on the plausible opportunity right in front of them when every day, we hear stories of crypto investors becoming millionaires or even billionaires.
Should you invest in crypto to become rich?
Yes, why not! However, that should not be the only motivation. Invest in this new asset class only if you understand it and do not chase quick gains. Most investors who bought into crypto in 2021 are in losses because of the bear market. So, if you do think that crypto is a get-rich scheme, you will be disappointed.
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