Cryptocurrency: The Optimism Edition
The current market might be taking a beating but do you see a bright future for cryptocurrencies? The fact you are here leads me to believe you want to lean on the side of optimism…and you wouldn’t be alone. The crypto community has an unrivalled optimistic attitude and belief in its potential to really improve the infrastructure of society. It’s been over ten years since Satoshi Nakamoto created the basis for his idea of Bitcoin — a peer-to-peer electronic cash system. Since then, the user base and interest in crypto has grown exponentially and hope is on the rise with it. “58% of cryptocurrency holders now say they feel optimistic about the world economy, compared to 43% of non-holders or investors.” But where did this come from? What makes the crypto community so hopeful? And should old ways be pushed aside for new technology?
As I write this article, the crypto markets have had a few days of solid gains after a monumental nosedive, but many speculate that the latest recovery could still be a dead cat bounce. Even if you overlook the extreme volatility of the past weeks, 2018 has still not been a great year for crypto, with a roughly estimated decline of 60%. However, even with this decline, a recent survey has found that consumers and investors are optimistic about the future and they are “considering to purchase more coins in the next 12 months because of the potentiality of cryptocurrency”. Even on most platforms, there appears to be a collective optimism. On Quora, one member writes “The long term outlook is good, in my opinion, but it is long term.” And on Twitter, John McAfee says “Institutional investors are preparing to enter the cryptocurrency market…Expect the top ten coins to go through the roof fairly quickly. The bulk of alt coins will soon follow.” The high levels of optimism within this community gives us a good indication as to why these crypto investors are drawn to potential high risk situations and that ultimately sets these users apart from the general public.
According to Global Web Index, roughly “5.4% of the global internet population own cryptocurrency”. And of this US and UK demographic, 50 to 60% own less than $500 which suggests that most are casual investors. However, what sets the crypto community apart from the norm is their idealism, not the assets. There is hope that a new form of payment can offer a more safe and reliable method avoiding the distrusted middle man and banks.
Looking at this infographic, you can see how committed the crypto community is to their beliefs. To each and every statement, well over half, nearly three quarters, believe in crypto and how it could be the answer for the future and will one day replace traditional currency. It is also interesting to point out that one of the highest percentages lies with the statement that cryptocurrencies are a safe investment. Market instability is clearly not a strong enough disincentive for committed and even casual cryptocurrency owners. .
And coming back to Global Web Index, the cryptocurrency audience is ‘relatively young’ and their most preferred social and content network is not surprisingly, YouTube. A YouGov poll has also provided a positive indicator for the future stating “48% of millennials would be interested in using a digital currency” for the future. This, for me, makes a lot of sense. Younger generations have been through some tough times recently. In 2008, they were witness to the global recession, seeing how parents and siblings struggled with large student loans, finding jobs and perhaps staying longer at the parents’ house to save money. And with huge scandals in breaches of security like the former CIA employer Edward Snowden leaks and the recent GDPR laws that have come into effect because of Facebook, trust in in the big conglomerates seems to be on a steady decline. Add to the mix smartphones and the rise of mobile internet, not a lot of news will get past this generation. And now we have been given a new way to pay. With so many young people wanting to break the status quo, with entrepreneurial skills aspiring to make a difference to the world, it’s no wonder that crypto has resonated with this audience.
For now, crypto still has a long way to develop and probably even longer to be implemented into mainstream society. But with statistics like this, it is intriguing to see how enthusiastic this community is. And even 40% of the non-believers ‘who don’t own any crypto expect it to grow in value.’ Younger generations are the driving force for implementing this and it is the hope that is keeping it alive. This is the beginning of a journey into the new realms. However, once safety and uncertainty is cleared up, it will not only be the risk-takers that want a piece of the crypto market.
