News
Nearly 50% of US voters want cryptocurrencies in their wallets!
Thu 30 May 2024 ▪ 4 minute read ▪ by Luc Jose A.
As inflation and geopolitical tensions persist, cryptocurrencies are gaining popularity among American voters. Nearly half of voters are now considering incorporating these assets into their portfolios. Why this renewed interest and what are its potential consequences on the financial market?
Cryptocurrencies appeal to American voters
American voters’ interest in cryptocurrencies has increased significantly, driven by geopolitical tensions and rising inflation. According to a recent Grayscale study, 47% of voters plan to include cryptocurrencies in their portfolios, up from 40% at the end of last year. The rise in popularity of these assets, particularly Bitcoin, is largely due to their perception as a hedge against inflation and as a reliable alternative to traditional financial systems, which are considered unstable during times of economic uncertainty.
This change in behavior is especially evident among younger generations and minority communities, who are looking for innovative solutions to protect their financial future. Bitcoin, often referred to as digital gold, is seen as a potentially safe store of value during a crisis. Bitcoin’s growing popularity reflects a greater awareness of the benefits cryptocurrencies offer and a growing desire to hedge against unpredictable economic fluctuations.
Other factors behind this renewed interest
In addition to inflation and geopolitical tensions, many other factors have contributed to this growing interest in cryptocurrencies, according to the Grayscale survey. These include recent events related to the queen of cryptocurrencies. One of the most notable events was the approval of the first Bitcoin Spot ETF in the United States in January 2024. This ETF offers investors a simplified method to access Bitcoin without the complexities of direct ownership.
By making Bitcoin more accessible to both institutional and individual investors, this approval not only legitimized the cryptocurrency but also strengthened market confidence in its stability and reliability. This decision by US regulators has stimulated demand and attracted a new segment of investors who now see Bitcoin as a reliable component of their financial portfolios.
Another key factor is the April 2024 halving which reduced mining rewards by half and decreased the rate of creation of new Bitcoin. This reduction in supply, combined with increased demand, has historically led to a significant increase in the price of Bitcoin. The anticipation of this event has attracted many investors looking to take advantage of the scarcity dynamic, further increasing interest and commitment to Bitcoin. These two events therefore strongly contributed to the increase in voter interest in cryptocurrencies in 2024.
The increase in voter interest in cryptocurrencies suggests a shift towards wider adoption. In the future, this could lead to significant developments in financial regulation and technological innovation, thus shaping the digital economy in a sustainable way.
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Luc Jose A.
Graduated in Science Po Tolosa and holder of a blockchain certification consultant issued by Alyra, I returned to participate in Cointribune in 2019. Capturing the potential of blockchain to transform numerous sectors of the economy, I have made a commitment to raise awareness and inform the great public about this constantly evolving ecosystem. My goal is to allow anyone to better understand blockchain and learn about the opportunities it offers. I strive every day to provide an objective analysis of current events, to decipher market trends, to convey the latest technological innovations and to put into perspective the economic and social efforts of this revolution in brands.
DISCLAIMER
The views, thoughts and opinions expressed in this article are solely those of the author and should not be relied upon as investment advice. Do your research before making any investment decisions.