Plus   Neg

Major US Investors Think Bitcoin Is Very Risky

nyse july31 lt

Only 2 percent of major U.S. investors have invested in Bitcoin, according to a survey conducted by Gallup and Wells Fargo.

The poll surveyed nearly 2,000 investors who have put more than $10,000 in stocks, bonds and mutual funds. Less than 1 percent of them said they plan to buy the popular cryptocurency in the near future.

Seventy five percent of major U.S. investors think bitcoin is a very risky investment.

While most investors say they have no plan to ever buying bitcoin, about one in four say they are interested in it but won't be buying it in the near future.

The second-quarter Wells Fargo/Gallup Investor and Retirement Optimism Index survey, conducted in May, shows Bitcoin has yet to make significant inroads into any major group of U.S. investors. While ownership is more common among wealthier investors, just 3 percent of those earning $90,000 or more report owning bitcoin, compared with less than 1 percent of lower-income investors.

The findings of the survey is contrary to the belief that the digital currency wave is extensive in the United States.

Only about 29 percent say they know something about digital currencies. Most of the rest say they have heard of these currencies but don't know much about them, while 5 percent have not even heard of them.

The bigger constraint on bitcoin sales is likely the widespread perception that trading in the currency is not safe. While risk is central to how investing works, three in four investors who have heard of online currencies consider bitcoin a very risky investment.

Wells Fargo/Gallup's bottom line statement is that as far Bitcoin is concerned, most U.S. investors prefer to play it safe with their investments, opting for security over growth.

The price of bitcoin remains volatile. It showed signs of an upswing recently after crashing earlier this year. Some said the bubble is about to burst, and others argued that its value will only accelerate as more merchants adopt it.

For comments and feedback contact: editorial@rttnews.com

Follow RTT