Did Crypto Investment Activity Grow in 2021? Data Suggests YES!

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What would you do if you knew that almost 70% of people that hodl crypto started investing last year? Well, that's precisely what happened in the US in 2021, according to the global crypto exchange Huobi.

Huobi did its due diligence and presented plenty of data in its Crypto Perception Report 2022. Here, they surveyed over 3,000 people to get a better grasp of the state of crypto and its investors. 

Will this sudden rise in crypto investing impact the market? For sure it will. Let's see the survey results — what Huobi found might change the way you look at crypto forever.

2021: The Year of Crypto Investing in the US

Crypto was this sort of underground thing our family members didn't care about. But that changed before we could notice. All of a sudden, uncle Bill and aunt Annie started to ask questions. That only indicates something: while many of us have been in the space for years, most crypto holders joined the space last year.

At least that's what Huobi found in their Crypto Perception Report 2022. The Chinese exchange surveyed a grand total of 3,144 users to find out their opinion on the growing popularity of crypto. 

The result was, to say the least, astonishing. Around 68% of American crypto users started investing in 2021. According to their data, only 21% started investing in 2019 or sooner. 

Yet, investors are still skeptical about investing in crypto. More than 40% of respondents said they didn’t know enough about digital assets. This isn't a very positive outlook, as new users might not understand the risks involved in holding crypto. 

In terms of the amount of money invested, people are torn between two polar extremes. 25% of people said they did not have enough capital to invest in crypto. Yet, another 25% of respondents were at the opposite end of the spectrum. The latter claimed to own cryptocurrencies worth between $1,000 and $10,000. 

The most significant bulk of investors was in the middle with 46% of respondents claiming to have invested less than $1,000 in crypto assets. 

Then, they jumped right into the concerns crypto holders might have. 34% of users are concerned about the lack of regulation. On top of that, under half of the respondents said they felt crypto was too risky.

Some people are still sitting on the sidelines waiting to see what happens with crypto. 25% of respondents thought crypto was a scam or a bubble. 42% of total respondents feel ambivalent about the future of crypto. 

However, a minuscule group absorbed the crypto life and its “hold on for dear life” motto. 19% of respondents believed that crypto may transform what money is like in the future. 

What’s Needed for Adoption To Come?

Jeff Mei, director of global strategy at Huobi Group, shared his opinion on the topic. According to Mei, DeFi and NFTs might be the big reason why so many people joined the crypto movement last year. 

Yet, Mei also acknowledges that there is still a long way to go before widespread adoption is achieved.

But Mei wasn't the only expert to share his opinion. David "DJ" Gabeau, a former analyst at Union Square Ventures, shared his opinion with us. According to DJ, only one thing can drive more adoption in the US: better education.

DJ thinks that with the rapid pace of innovation in the space, there is a lot of confusion among the different platforms, tokens, and use cases. On top of that, crypto needs to be more accessible through more user-friendly products. Once that barrier to entry is tackled, adoption should come quicker.

Will Rush, CEO, and founder of Stack, also joined the conversation. According to Rush, there needs to be more age inclusivity for crypto adoption to be higher. 

Rush believes that if Gen Z's were allowed to invest without a custodian, adoption would move forward at a faster rate. If we genuinely want to make Web3 open for everyone, we need to make it accessible for the next generation.

Will Crypto Regulation Scare Investors?  

Yet, some people are scared of regulation. Could possible regulation scare investors away? According to Sukhi Jutla, co-founder & COO at MarketOrders, it will be quite the opposite.

According to Jutla, regulation could help increase investment. Regulation will provide reassurance to investors and more confidence in the business community. Yet, she acknowledges it won't be that easy. Regulation should be globally favorable and continue to promote innovation in this space rather than deter it. 

Will crypto regulation be favorable to the market, or will it put more roadblocks in the way? That we will only know when it comes.

Crypto investment has only gotten more popular — everything points its popularity will keep rising. Yet, it still feels like a vast ocean. Every day more projects and NFTs jump in the water. With this in mind, more and more investors will become new mariners that sail this sea of opportunity as time goes by. Will you be a huge ship, or will you have a small boat?

 

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