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(Kitoko News) – The cryptocurrency community sees cryptocurrencies as a sensible way to hedge against inflation, or as a principled way to opt out of a corrupt financial system, or to protect against global crises. praised as a wise way to
A recent study by the Bank of International Settlements (BIS) shows that these discussions are like buffets at casinos. It’s a nice bonus to have, and a convenient way to justify the whole workout, but it’s not the one that gets people out the door.
and working paper Entitled Crypto Trading and Bitcoin Prices: Evidence from a New Database of Retail Adoption, authors Sebastian Dohr, John Frost, Raphael Auer, Giulio Cornelli, and Leonardo Gambacorta by Private Investors We have built a large dataset on the daily usage of crypto exchange apps. 95 countries from 2015 to 2022.
The authors show that there is one overwhelming factor driving people to download cryptocurrency apps and buy bitcoins. That’s an increase in price.
First, we show that the rise in the price of Bitcoin is associated with a significant increase in new users the entry of new investors. Factors such as “characteristics of
Perhaps most tellingly, “Bitcoin’s price remains the most important factor when it comes to managing global uncertainty and volatility, contradicting explanations based on Bitcoin being a safe haven.” It means that Even when differences in quality and trust at the level of institutions and economic development are taken into account, a simple price increase “still has an economically and statistically significant effect on the number of new users, and is a significant factor in the volatility in new user entry.” I’ll explain most of it to you, the user.”
The study also makes it very clear that the cryptobro stereotype has been well-earned. I am writing. Men aged 35 to his 54 make up an additional 25% on average. This is because more than 65% of the people on platforms like Binance, Coinbase and (shudder) FTX are men. , which means it is biased towards young people.
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What makes this demographic special in the financial world? Is it their prudent spending decisions? What is their passion for careful planning? Is it their deep understanding of the macroeconomic and historical factors that influence financial markets? Perhaps a trend for due diligence?
If you say risk appetite, you’re right. Men under the age of 35 are the most risk-seeking segment of the population and are more sensitive to Bitcoin price changes than female users and older men.
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Adopting a crypto platform and investing in Bitcoin is a youth game. Less than 35% of all users worldwide are women, and the majority of female users of cryptocurrency apps are under the age of 35, they wrote.
When the authors correlated the timing of downloads and purchases with the demographics that were downloading and purchasing, the conclusion was clear. Rising prices not a distaste for traditional banks, a quest for stores of value, or a distrust of public institutions.
But hey, this demo might reply. So we young men go crazy for cryptocurrencies when they are doing wellwhy does it matter? As most older men (and almost all women) would happily say, It is a poor investment to jump on the bandwagon and buy high. Young fawns are taken to the slaughterhouse like lambs. Or like whale krill.
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The authors stated that their findings support the notion that, by and large, investors view cryptocurrencies as a speculative investment (gambling) rather than as a means of payment for real economic transactions. I am writing. They also pose questions we are asking ourselves in the post-Luna, post-Venture, post-FTX world. fix? ”
73-81% of global investors have likely suffered losses on their crypto investments, with large investors (humpbacks) selling while smaller investors are buying. Our estimate that cryptocurrencies will democratize the financial system, they conclude.
Isn’t it a form of democracy when nearly everyone who votes with their wallets shares in the huge losses of “investing” in cryptocurrencies?
Disclaimer: The views expressed in this article are those of the author and may not reflect the views of the author Kikko Metals Co., Ltd. The author has made every effort to ensure the accuracy of the information provided. However, neither Kitco Metals Inc. nor the authors can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation of an exchange of commodities, securities or other financial instruments. Kitco Metals Inc. and the authors of this article accept no liability for loss and/or damage resulting from the use of this publication.
