A Harris Poll shows that optimism amongst Crypto investors is sky-high. The study shows that out of the 2,000 participants, 71% of self-declared Crypto holders are confident that they are on the path to being billionaires. In contrast, only 44% of non-Crypto owners think that they have a chance of being billionaires in their lifetime.
Crypto Is An Ideal Store Of Wealth
The poll affirms that Digital Assets is an ideal wealth store. They have a limited supply, and their demand will keep rising as adoption increases. On the other hand, the other financial assets are prone to market shocks that often result in plummeting their intrinsic values.
The financial industry is also heavily regulated and monitored, and some investors perceive these factors as an intrusion into their privacy. Digital Assets, on the other hand, offer privacy and encrypted transactions that are difficult to decipher. However, regulators globally are increasingly calling for transparency from Crypto Asset Service Providers (CASPs) regarding disclosure.
Last week, a Federal Judge in New York authorized the IRS to summon records from a Crypto brokerage firm. The case is a turning point for investors who have enjoyed anonymity since the launching of Bitcoin in 2008.
Optimism Amidst a Bear Run
In July, during the poll, the Crypto market was on a downward spiral. The Federal Reserve has been increasing the interest rate in 2022. The aim was to curb inflation after high public spending in the Covid season. Instead, the supply of money in the economy increased, leading to high prices of goods and services. The Russia-Ukraine situation has aggravated the energy crisis following the conflict, and the economic woes compounded.
Despite the turbulent economic times and the dwindling short-term returns on Digital Assets investments, confidence in Crypto remains unfazed. The research shows that the Cryptocurrency market is ideal for long-term investments. However, Stablecoins and CBDCs offer short-term solutions for buyers who intend to use Cryptos to purchase commodities in e-commerce.
The Research Was Cross-Sectional
The poll included Generation Z, Millennials, Generation X, and Baby Boomers. The variance of responses across the age groups was negligible, and there seems to be a consensus on Crypto.
The study, however, exposed the divisive issues of wealth accumulation by individuals in society. 40% of the 2,000 responders have a negative opinion of billionaires. Most people believe that a few private citizens should not accumulate wealth at the expense of others. However, 60% still look up to billionaires for financial literacy tips.
In the meantime, those who aspire to enter the high net-worth bracket can start by buying the prevailing dip. A JP Morgan financial market analyst projects that 2023 will be a good year for the market. He forecasts a rally once the Federal Reserve starts lowering lending rates.