Who Invests In Bitcoin? Understanding The Typical Investor

Bitcoin is a cryptocurrency with a dedicated and diverse fanbase. While it's difficult to pinpoint a single type of person who invests in Bitcoin, there are some common threads among investors. For instance, men are more likely to be interested in Bitcoin than women. Bitcoin investors are also more likely to be interested in gold, perhaps because both are seen as a store of value. Bitcoin investors are also often keen consumers of financial news.

Bitcoin investors are also more likely to hold non-mainstream political views and engage with fringe social media. They are more likely to believe in conspiracy theories, support political extremism, and have dark personality characteristics such as narcissism, Machiavellianism, psychopathy, and sadism.

Bitcoin is also popular among those who want to diversify their portfolio, as its price movements are not closely correlated with the stock market.

People who hold non-mainstream political views

A study by the University of Toronto, Canada, found that people who invest in cryptocurrencies like Bitcoin are more likely to hold non-mainstream political views. The study, which surveyed 2001 Americans in 2022, found that 30% of respondents owned or had previously owned cryptocurrency. The researchers found that crypto investors were more likely to believe in conspiracy theories, support political extremism or non-mainstream political ideologies, and have "dark" personality traits such as narcissism, Machiavellianism, psychopathy, and sadism.

The study also revealed that crypto investors were more likely to be male, have higher incomes, and rely on fringe social media sources for news. These findings suggest that crypto investors tend to have a particular set of demographic, psychological, and social characteristics that set them apart from those who do not invest in cryptocurrencies.

It is worth noting that the study has limitations, as it relied on self-reported data from participants, and cannot establish a direct causal relationship between these beliefs and the choice to invest in cryptocurrency. However, the findings provide valuable insights into the people behind the relatively new movement of cryptocurrency investment.

People who engage with fringe social media

A study by the University of Toronto, Canada, found that people who invest in cryptocurrencies are more likely to hold non-mainstream political views and engage with fringe social media. The study surveyed 2,001 Americans in 2022, 30% of whom owned or had previously owned cryptocurrency. The researchers found that crypto investors were more likely to believe in conspiracy theories, support political extremism, and exhibit "dark" personality characteristics such as narcissism, Machiavellianism, psychopathy, and sadism. They also found that the most strongly associated factor with crypto ownership was a reliance on fringe social media sources for news.

The rise of Bitcoin and other cryptocurrencies has been closely linked to social media. Bitcoin was first promoted through an email list of 2,000 subscribers and forums like Bitcoin Talk. Social media platforms such as Twitter, TikTok, and Reddit have played a significant role in the success and popularity of Bitcoin and other cryptocurrencies. These platforms allow investors to connect with like-minded individuals and create a sense of community.

Fringe social media sites, in particular, have gained popularity in recent years. These alternative platforms, such as BitChute, Gab, Gettr, Parler, Rumble, and Telegram, have been found to have a notable number of accounts seeking financial support from their followers. According to a study by Pew Research, nearly 25% of prominent accounts on these sites requested financial support, with the most common forms being donations, subscriptions, and merchandise sales.

The influence of social media on cryptocurrency prices has been studied as well. A study of early forum posts and Tweets found that infrequent posters had a more significant influence on the cryptocurrency's highs and lows than those who posted frequently. This may be due to the fact that early cryptocurrency investors were more emotionally invested and biased towards the success of Bitcoin. As Bitcoin gained popularity and moved from fringe internet discussions to mainstream conversations, its prices became more volatile, and the influence of social media on its price may have decreased.

People who are male and high-income

According to a 2022 survey of 2001 Americans, male and high-income individuals are more likely to invest in Bitcoin and other cryptocurrencies. The survey also revealed that crypto investors were more likely to be argumentative, anti-authoritarian, and to get their news from non-mainstream social media sites.

The average investor interested in Bitcoin is 42 years old, slightly younger than the average investor who is 45. Contrary to popular belief, Bitcoin investors are not predominantly millennials and younger investors.

A survey by Grayscale found that 57% of those interested in Bitcoin were men, compared to 49% of the overall investor base surveyed. Additionally, investors interested in Bitcoin were slightly more likely to identify as Republican and had a similar income distribution to the average investor.

The same survey also revealed that investors interested in Bitcoin are more likely to be interested in gold. This is not surprising, as Bitcoin is often referred to as "digital gold", and many people who own Bitcoin see it as a store of value rather than a payment mechanism.

People who are interested in gold

Bitcoin investors are often also interested in gold. In fact, 69% of investors who are interested in Bitcoin believe that gold is a good investment, compared to 55% of investors overall.

Gold has been a trusted investment for centuries. It is widely considered a safe haven in times of economic crisis and a hedge against inflation. Gold's value is not tied to any governmental or economic system, and its price often increases when stock prices drop and currency weakens, making it a great way to protect your portfolio from losses.

Gold is also rare, with a limited supply that cannot be increased. It is always in demand due to its use in everything from jewellery to electronics, and its prices tend to remain relatively stable over time, making it a solid long-term investment.

However, gold typically generates modest returns, making it better for wealth preservation than wealth generation. It is also subject to additional costs for secure storage and insurance if you choose to invest in physical gold.

Gold is generally best suited for investors who prioritise stability and focus on long-term goals. It doesn't require constant monitoring of the news or engaging in risky speculation.

Ultimately, whether to invest in gold or Bitcoin depends on your risk tolerance, investment goals, and preferences.

People who are younger

Bitcoin investors are generally thought of as younger people. However, the average bitcoin investor is 42, which is only slightly younger than the average investor, who is 45.

Younger people are more likely to hold non-mainstream political views and engage with fringe social media. They are also more likely to be male and have a higher income.

Younger investors are also more likely to be interested in gold, which is often referred to as "digital gold" due to its status as a store of value.

When it comes to investing in Bitcoin, younger people may be more likely to use a cryptocurrency exchange, which can be accessed via a mobile app or website. They may also be more comfortable with the risks associated with Bitcoin, such as volatility, fraud, and theft.

Additionally, younger investors tend to have a better understanding of new technologies and are more open to innovative investment opportunities. They may also have a longer investment horizon, allowing them to take on more risk in the hopes of higher returns.

Overall, while people who are younger do invest in Bitcoin, it is important to remember that investing in cryptocurrencies carries significant risks and should only be done with careful consideration and an understanding of one's financial goals and risk tolerance.

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