Bitcoin is still a very funny phenomenon. Many people still don’t understand what exactly Bitcoin is. Some people describe Bitcoin as a store of wealth; others see it as a digital gold while others see it as a currency. However, the real combination is what the common people on the Bitcoin streets see it and how they use it and work with the new technology to revolutionize the currency.
A survey was recently contacted by LendEDU to show how 1,000 Americans use their Bitcoin investment and the available options they have for tax, security, holding and spending.
What meant you invest in Bitcoins?
As Digital currencies become more and more popular, it comes in with the more diverse population. Based on the survey conducted by LendEDU 20% of people invest in Bitcoins because it’s a long-term store of value just like they do with Gold and Silver. 40.8% of people invest Bitcoin because they believe it’s a world-changing technology. A lower percentage of 14% invest to gain profit because they believe the Bitcoin price will go up. 15% of the population were convinced by friends and family members to invest in the currency while the remaining 8.2% invested in so that they can use the currency for other transactions.
According to Roshaan Khan of Virginia Commonwealth University: “All my net-worth is stored in cryptocurrencies. This is because I see them as the best way to improve my financial ability for me to be financially secure. I believe they will help me to pay my student loans. More to that I admire the decentralization idea because it’s not influenced politically and has less corruption.”
How much Bitcoin do people Own
Based on the survey the total value of Bitcoin for those interviewed was $2,930.85. This figure is generally low because when the amounts are below $3000, which shows people are not throwing everything into the digital currency.
Some people seem not to be sure thus playing the waiting game. The same waiting game is being played by Banks too. According to the Chief information officer of one of Asia’s biggest banks, DBS there is no reason for the bank to join Bitcoin. In his statement: “Bitcoin is not helping DBS. It will not add customers, deposits or even wealth so right now we are just watching and learning.”
Should you Hold or Spend?
For newbies, the advice has been the same to hold and accumulate and let the account grow. According to the report, only 32.62% of investors have sold their Bitcoin. 67038 have not sold they are accumulating.
For how long should you hold onto your Bitcoin?
When this questioned was asked 16.49% of the people said that holding should be less than a year. 39.54% said that people should hold between 4 to 3 years. Another 22.34% suggested 4 to 6yeras with about 20.6% suggesting that people should hold for more than 7 years.
Do people have Tax and security concerns?
People are much divided when it comes to Bitcoin. 67.38% stated that they were ready to pay tax with 35.87% stating that they would keep quiet about taxes. On the security issue, 55.85% of the people are not worried and technological security while 44.14% are worried.