Bitcoin Investor Sentiment Heading into 2018 | Survey & Report
- December 13, 2017
- Posted by: Mike Brown
- Category: Personal Finance
2017 has been a breakout year for Bitcoin and virtual currency as a whole. Bitcoin's popularity exploded and the price quickly followed suit.
The price has significantly increased since we released our November survey. Today (12/13/17), the price of Bitcoin is trading at $17,169, up from $997 at the start of the year.
As we head into 2018, we thought it would be interesting to survey Americans who have invested in Bitcoin through a cryptocurrency exchange to see what their plans are for the virtual currency after the New Year is ushered in.
Do current Bitcoin investors think 2018 returns will exceed 2017? Are current Bitcoin investors planning to sell or buy more in 2018? Are investors going to make physical purchases?
In this short five question survey, we worked to get answers to these questions. Our own analysis can be found below the raw survey results below. Our methodology is provided at the end of this report.
1. In 2018, do you think Bitcoin's investment returns will exceed the returns of 2017?
a. 76.99% of respondents answered "Yes"
b. 9.73% of respondents answered "No"
c. 13.27% of respondents answered "Unsure"
2. Are you planning to sell some or all of your current Bitcoin investment in 2018?
a. 31.50% of respondents answered "Yes"
b. 40.00% of respondents answered "No"
c. 28.50% of respondents answered "Unsure"
3. Do you plan on increasing the size of your current Bitcoin investment in 2018?
a. 74.69% of respondents answered "Yes"
b. 8.32% of respondents answered "No"
c. 16.99% of respondents answered "Unsure"
4. In 2018, will you use Bitcoin to make at least one physical purchase?
a. 50.80% of respondents answered "Yes"
b. 19.82% of respondents answered "No"
c. 29.38% of respondents answered "Unsure"
5. In 2018, should the government play a stronger role in regulating Bitcoin and virtual currencies than in 2017?
a. 30.27% of respondents answered "Yes"
b. 49.73% of respondents answered "No"
c. 20.00% of respondents answered "Unsure"
Analysis & Graphics
Will 2018 Investment Returns Exceed 2017 Investment Returns?
The price of Bitcoin has increased by about 1,700 percent in 2017. In comparison, the S&P 500 is up by about 19 percent in 2017. By any metric, and in nearly all traditional comparisons, the investment returns seen by Bitcoin investors have been once in a lifetime.
We found that the strong majority of Bitcoin investors believe that the price of Bitcoin will increase at a faster rate in 2018 versus 2017. Very few of our respondents believe that 2018 investment returns will not exceed the returns experienced in 2017.
Are Bitcoin Investors Planning to Sell Some or All of Their Positions in 2018?
The majority of financial professionals recommend taking some gains after a sharp increase in the price of an investment. In this question, we wanted to identify the proportion of Bitcoin investors who might be looking to ring the register in the new year.
We found that the plurality of the Bitcoin investors we surveyed are not going to sell some or all of their investments in 2018. However, it was interesting to see that 28.50 percent of respondents are unsure about the idea of selling. Perhaps these investors are waiting for a certain price to take profits?
Are Bitcoin Investors Adding to Their Positions in 2018?
Some financial professionals recommend building a long term investment position over time. By leveling into your position you can remove short term volatility in price. In this question, we wanted to identify the proportion of Bitcoin investors who are planning to increase the size of their Bitcoin investments in 2018.
We found that the vast majority of Bitcoin investors plan on increasing the size of their Bitcoin investments in 2018. While we can't be sure, it is possible that some of the respondents may be trading around a current position while increasing the total size of their investment.
Are Physical Purchases Actually Going to Happen?
Many critics have suggested that Bitcoin will never become an actual payment method despite its initial design. In this question, we wanted to find out if current Bitcoin investors are, at the very least, open to the idea of making a physical purchase with Bitcoin in 2018.
We found that the slight majority of Bitcoin investors are going to try to make a physical purchase with Bitcoin in 2018.
Do Current Bitcoin Investors Want Increased Regulation?
Regulation can be a good and bad trigger for the price of Bitcoin. Some regulation could work to ease volatility and add confidence to the market. However, too much regulation could undermine the core principles of Bitcoin and many of the earliest supporters.
We found that the plurality of Bitcoin investors do not want additional regulation in 2018. However, we thought it was interesting to see that 20 percent of our respondents are unsure about the idea of increased regulation.
This poll was commissioned by LendEDU and conducted online by polling company Pollfish. In total, 565 American consumers ages 18 and up were polled. We instructed Pollfish to screen for consumers who invested in Bitcoin by passing though multiple screener questions. The poll was conducted over a five day span from November 9th, 2017 to November 13th, 2017.
LendEDU was not compensated by a third-party for running this survey. LendEDU has no financial relationships with any companies who market Bitcoin or cryptocurrency products.
As of 12/13/17, none of the employees on LendEDU's editorial team own Bitcoin.
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