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A cryptocurrency is a digital form of payment that can be exchanged online for either products or services. There are financial pundits out there who deem it as a risky investment choice, though one can’t deny the fact that it’s also one of the most in-demand commodities as of late. Despite the risks tied to it, investors are taking the chance as they’re still attracted to it.
The reason why cryptocurrency is luring investors
In a recent panel discussion hosted by The Street, financial experts Ed Lopez (Managing Director and Head of ETF products at VanEck) and Matthew Sigel (Head of Digital Assets Research for VanEck) were among the guests to give insights regarding the cryptocurrency system.
Sigel highlighted that one of the reasons why investors are opting for crypto is due to the low-cost base (the decentralized cost base) adding that every participant is doing their part by contributing their computing power and time to such work. Lopez, on the other hand, revealed that they devised a portfolio that invests in equities of companies that are involved in the digital asset ecosystem.
Albeit the fact that the realm of digital currencies is a highly volatile one and ever-changing, there are indications of a robust positive momentum for cryptocurrencies that will continue since more multi-billion-dollar companies are putting their names and reputations on the line as they get behind cryptos like bitcoin (BTC), ether (ETH) from the Ethereum network, and others. And just like what was earlier mentioned, despite its rapid growth, there are still retail investors out there who believe that cryptocurrency is a complex and risky investment.
Canada’s huge interest in bitcoin, ethereum, and other cryptocurrencies
Take Canada for example, there’s a recent study suggesting that almost every third Canadian has allocated some funds in digital assets. However, it was also noted that most of them still have concerns about their crypto investments since only five percent of them consider it as a safe strategy.
The financial technology firm known as Hardbacon conducted the said study among Canadian adults for them to check on the cryptocurrency sentiment in the country. The survey revealed that 28 percent of the participants responded that they have indeed purchased digital assets. Looking closer, 85 percent of them have exposure to bitcoin while 75 percent of them got some Ethereum.
It was also discovered that there’s also an increasing trend in meme stocks (i.e. AMC, Cineplex, GameStop) investment in Canada. 13.3 percent of the respondents claim that they also delved into such digital assets.
In line with this, another research was conducted as it showed that Canada had a significant increase in digital asset interest in 2020. According to the data gathered, 20,783 out of 100,000 Canadians have googled “crypto” over the past year. The numbers may seem small, but this still represents an increased interest of 213 percent.
As for the United States, it has been ranked as the most crypto-ready country. However, in terms of the above-mentioned crypto interest survey, out of 100,000 U.S. citizens, over 14,000 of them searched for such a topic.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
