With Bitcoin values continuing to climb (they're approaching $8,000 per as of writing), one has to wonder what the overall rationale is behind those involved in the cryptocurrency. Is it truly being used as an alternative currency or are people simply looking to turn a long-term profit? For those answers and more, we turn to a recent online survey from LendEDU.
In November, LendEDU polled 564 Americans that have invested in Bitcoin to gauge current sentiment and future expectations. The results are fascinating.
Of those polled, more than 40 percent said they are investing in Bitcoin because they believe it is world-changing technology. Most (just shy of 40 percent) said they plan to hold their investment for between one and three years although 11.70 percent are in it for the long haul and plan to keep their stash for over a decade.
The average value of each respondent's holdings is just south of $3,000 although at the time of the survey completion, Bitcoin was valued at $6,490 (it's at $7,867 as of writing).
Interestingly enough, only 32.62 percent of those questioned have sold any of their Bitcoins since initially buying in. It would seem that most people are indeed holding their virtual coins in hopes of some pretty big returns one day. Indeed, that day could be a long time away as on average, respondents said they would only be willing to sell their investment for around $200,000.
Security is a big concern. Of those polled, 44.15 percent said they routinely worry about the technological security of their investment.
Also of note is the fact that only 64.13 percent of those polled say they plan to report gains or losses on their tax return. Unless the IRS cracks down on cryptocurrency, it seems as though a lot of Bitcoin returns will slide under the table.