New Research Reveals That Record Of Unemployment Has Contributed To A Striking Shift Toward Bitcoin
In the wake of the coronavirus pandemic, interest in bitcoin has grown and the unprecedented actions undertaken by governments to contain it while propping up the global economy.
The bitcoin price crashed to under $4,000 during the broad March coronavirus and the price has bounced back to almost $10,000 per bitcoin.
New research has shown that now the extent public opinion has shifted toward bitcoin since 2017- with nearly half of millennials "likely" to buy bitcoin within the next five years.
"With over 20 million Americans currently unemployed, the public narrative towards bitcoin has changed," researchers at financial information platform The Tokenistwrote, summing their findings.
"The results are striking. We found increased knowledge of, and growing confidence in, bitcoin among all age and gender groups surveyed. This effect was most pronounced in millennial respondents, 45% of whom would now preferentially invest in bitcoin overstocks, real estate, and gold."
The unemployment rate soared to almost 15% across the U.S. in April because of the coronavirus, it's the biggest level on record, with millennials among the hardest hit and in February the unemployment rate was at a half-century low of 3,5%.
47% of people trust bitcoin over large banks, an increase of 29 percentage points over the past three years, shows the survey, which gauged how market fluctuations caused by Covid-19 has changed people's view of bitcoin.
44% of millennials report that they are likely to buy bitcoin in the next five years, 43% of respondents, and 59% of millennials thought that most people will be using bitcoin within the next decade.
"These data indicate that bitcoin has a bright future, and will likely benefit significantly from the current market crisis," the researchers wrote.
"With confidence in traditional investment instruments decreasing, bitcoin stands poised to offer investors an alternative, long-term store of value."
Alex Leishman, the founder of River Financial, a San Francisco-based startup bitcoin brokerage and financial services firm, said that: "The surging activity we've seen since the beginning of 2020 has been in part inspired by the Federal Reserve's unprecedented monetary intervention."
According to Leishman, growing interest in bitcoin from "seasoned macro investors" like Paul Tudor Jones, Dan Tapiero and Raoul Pal is legitimizing bitcoin "within the mainstream finance community”.
Olaf Carlson-Wee, founder of hedge fund Polychain Capital, said that:
"The evolution of finance is only happening faster in the wake of the current global economic crisis, which has illuminated holes within traditional financial systems that can potentially be filled by bitcoin.”
Around 5000 people were questioned in April 2020 by The Tokenist, analyzing the findings to surveys carried out by brokerage eToro, investor Blockchain Capital, and personal finance website BankRate in 2017.
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