Bithumb Study Reveals 43% Of Crypto Users Plan To ‘Hodl’ Long-Term
It’s easy to be spooked by the volatility of cryptocurrency markets. However, a new study by South Korean crypto exchange Bithumb has revealed that more users are interested in long-term investing instead of short-term gains.
The study surveyed approximately 2500 users of the Bithumb platform in May 2018. Bithumb published the results of the study online on June 7.
The study revealed that only 27% of crypto users are buying crypto for short-term gains. 42.8% of users, meanwhile, intend to ‘hodl’ their crypto assets over a long period of time.
In other words, significantly more users are invested in cryptocurrency long-term compared to users invested in crypto short-term.
The study also showed that 13.1% of Bithumb users purchased crypto for investment purposes while 10.5% were focused on marriage and property ownership-related goals.
The findings connect with similar studies from across the crypto community. Cryptocurrencies went through a prolonged buying phase towards the end of 2017. Research from April, meanwhile, shows the community is now in a prolonged ‘hodling’ phase. While some analysts believe bitcoin’s price will rise towards the end of 2019, others don’t see bitcoin rising above $20,000 until 2019.
“As virtual currency continues to be recognized as an asset in major industrialized countries, the perception of virtual currency investment by domestic investors is gradually maturing,” Bithumb explained in a statement to Korean news outlets.
Older Crypto Investors Were More Likely to ‘Hodl’ Than Younger Investors
Bithumb’s study separated cryptocurrency users by age groups. The exchange found hodling activity differed significantly among age groups.
The highest percentage of long-term hodlers, for example, were investors over 50. 49.1% of crypto investors over 50 planned to hodl their crypto assets long-term.
In comparison, just one in three 20-something investors (approximately 30%) expected to hold their crypto assets long-term.
Do older investors know something that younger investors don’t? Or are older investors more patient about their investing decisions? In any case, this is a significant gap between crypto investor age groups.
South Korean Crypto Users Unfazed By Potential Crypto Taxes
Bithumb also asked surveyed users about their attitude towards a potential cryptocurrency tax. Contrary to what some might have expected, Bithumb found that most crypto users were “broadly welcoming” government regulation on taxes and other areas of the crypto industry.
The study, for example, revealed that 39.5% of cryptocurrency holders would keep their investment even in the event of needing to pay capital gains tax. That’s 11% higher than last year’s reported percentage.
Only 13.1% of cryptocurrency users surveyed by Bithumb claimed they would “stop investing” in crypto in the event of government regulations.