While some people believe in the long-term potential of cryptocurrencies, others are reluctant to invest money due to various concerns. A recent study by Coupon Follow found that the majority of people who did not invest in cryptocurrency raise concerns such as value volatility, restricted applications, environmental impact as well as regulatory concerns.
Interest in searching overtime “should I invest in cryptocurrency”. Source: Google Trends
The survey, which included respondents ages 18 and older, was answered by 1,172 people from Gen Z, Millennials, Gen Xers and Baby Boomers. Each group was represented by samples ranging from 172 to 333 individuals. According to the report, not all of the respondents were “currency holdouts” or individuals who had not yet invested in cryptocurrency.
A lack of understanding has been reported as the most common reason buyers are hesitant across all generations, according to research. When asked about their refusal to buy cryptocurrency, 42% of respondents said they “do not understand its value.”
However, the report notes that the interest in learning more about cryptocurrencies has not faded away. Even if they were unwilling to invest money in it, the majority of respondents were at least somewhat interested in learning more about cryptocurrencies. A large proportion of respondents, 39%, were afraid of encryption fluctuations.
Source: Follow the coupon
Eighteen percent of respondents said that learning more about the benefits of investing in cryptocurrency was the most effective approach to moving from skeptic to believer. Millennials said that getting more income is the most likely scenario that will convince them to invest in cryptocurrency. The research found that members of Generation Z care more about government regulation and law enforcement in the emerging space.
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Given the growing number of financial crimes taking advantage of DeFi as well as the dramatic crash of Terra last week, this should come as no surprise.
Regulators are primarily concerned with protecting consumers, and they clearly have a hard time keeping pace with the fast-moving sector. The organization is there but it feels disorganized. The US Securities and Exchange Commission (SEC) recently revamped its crypto unit with more designations, and as the general public becomes increasingly aware of cryptocurrencies, we might expect to see more regulation in this area. Experts believe crypto companies should work with regulators to increase adoption.