Investors get involved in the crypto ecosystem for various reasons, and a recent report by PaySafe has identified some of the reasons why people put their funds in cryptocurrencies.
The report backed earlier claims from companies like Grayscale which affirmed the growth in crypto adoption. The report drew respondents from the UK and the United States, and about 25% of the participants bought digital currencies because they believe it is the future of money.
The growing maturity in the digital currency ecosystem accounts for why many institutional investors are turning into the nascent asset class to bolster their revenue. While many investors back cryptocurrencies with keen seriousness, the PaySafe report shows as much as 21% are investing the coins for the thrill of it.
The survey also highlighted the declared commitment of the respondents towards digital assets as 55% said they will like to be paid in crypto. The particular show of commitment increases with reducing age. Specifically, the percentage of those who would like to get paid in crypto is higher in those aged under 45 and reaches 60% of those aged 18-24.
Of all the survey participants, a number still has reservations about taking their salaries in crypto owing to the high volatility of the asset class. According to an excerpt form the PaySafe report.
“The volatility of crypto’s value is the main reason some people are hesitant about crypto being their main source of finance, with 32% of those who don’t want to be paid their salary in crypto saying it is too risky not knowing what their salary would be, and 26% are worried about a price crash leaving them with no money.”
These volatility fears can be validated with a series of reported liquidations that have rocked the crypto industry in the past few years.
Easy Liquidation: Hindrance to Mass Adoption
The strict regulations governing digital currencies in several countries make it very difficult for crypto investors to transact through local financial institutions. Based on this, the report identified the absence of easy liquidation as a hindrance to the mass adoption of the growing asset class.
While many of the respondents, up to 60% believe making crypto transactions with online merchants will become easier in the next few months, The survey revealed that over 13% of those surveyed will be more willing to invest in digital currencies if the environmental controversies around them are non-existent.