Bitcoin

Trump or Biden? Bitcoin wins regardless of the US elections

Whether it’s a democratic move led by Joe Biden or a re-election of Donald Trump, Bitcoin (BTC) is likely to flourish. Industry executives including DCG and Grayscale CEO Barry Silbert say both a Trump and Biden victory would strengthen BTC.

The optimistic stance of industry executives despite the obvious election risk emerges from Grayscale’s Bitcoin study.

Grayscale, a major cryptocurrency investment firm with $ 7.6 billion published a study on Net Worth Under Management on Oct. 27, highlighting that the potential market for Bitcoin has grown significantly in 2020.

Trump or Biden? Bitcoin wins regardless of the US elections
Trump or Biden? Bitcoin wins regardless of the US elections

In 2019, Grayscale found that 36% of investors in the US were interested in investing in Bitcoin. This year, 55% of US investors are considering Bitcoin. The study says:

“Interest is increasing: More than half of US investors are interested in investing in Bitcoin. In 2020, more than half (55%) of those surveyed showed interest in Bitcoin investment products. This represents a significant 36% increase in investors who said they were interested in 2019. “

The increase of almost 20% means a significant increase in general awareness in a short period of time. It also fits together the growing demand for Bitcoin from institutions after the impressive rally of Bitcoin over 200% since March.

The share of Bitcoin increases from 36% to 55% within one year. Source: grayscale

A greater awareness of the traditional world strengthens BTC

Strong fundamentals behind Bitcoin and rapidly growing demand could offset election risk in the fourth quarter.

For example, One particularly positive statistic that shows the sharp rise in demand for Bitcoin in 2020 is the rate at which people interested in BTC are becoming actual buyers.

Loud grayscale Of those who expressed their intention to invest in Bitcoin, 83% bought BTC. The researchers wrote:

“Of those who reported investing in Bitcoin, 83% invested in the past year, indicating that digital currencies are an increasingly attractive part of modern investment portfolios.”

The higher prospect-to-investor conversion rate is important as the potential market for Bitcoin has grown rapidly.

In addition, the potential market in the US of around 32 million investors does not include other major markets such as Europe and Asia.

In the meantime, The number of investors familiar with Bitcoin has also increased significantly. The survey found that 62% of investors are familiar with BTC, compared to just 53% in 2019. The study said:

“According to this year’s survey, the market for potential Bitcoin investors is 32 million compared to 21 million investors a year ago. This year, 62% of investors said they were familiar with Bitcoin, up from 53% in 2019. “

The potential market for Bitcoin in the US is now 32 million investors. Source: grayscale

What is BTC’s biggest draw for investors?

The main reason Bitcoin’s appeal remains its exponential growth potential. In the eyes of institutional investors, however, it is also a hedging instrument.

Bitcoin is a hedge against inflation and has exponential growth potential. It makes it an attractive portfolio asset for both institutions and accredited investors.

As a result, there has also been an increase in the number of investors who buy Bitcoin with a fraction of their capital or portfolio and build on existing positions. Grayscale Research says:

“The factors that sparked interest in Bitcoin over the past year caught even more appeal with investors in 2020. In 2019, 59% of respondents said the ability to start small and grow their investments over time would be a motivating factor when considering Bitcoin investment products; in 2020 that number rose to 65%. “

The sharp surge in interest in Bitcoin follows a sustained surge in inflows from institutional investors. As Cointelegraph reported, Grayscale added $ 300 million to its net assets under management in one day on October 23, as the price of Bitcoin hit new annual highs.

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