Asset Protection Won’t Take Cryptocurrency Mainstream Despite Report Claiming Otherwise
There are always questions as to how popular cryptocurrency really is. Finding an answer to that question is not straightforward. A new study conducted by Nobl Insurance seemingly offers some interesting indicators. The company claims cryptocurrency is gaining a lot more popular in the United States. So much even the industry could see a major boom in the months ahead.
An Interesting Study
Every time a study on this level is conducted, it has to be put in its proper perspective, The sample pool of respondents is very limited and hardly ever represents the sentiment of an entire nation. Even so, the Nobl Insurance study is worth taking note of. Their research claims millions of Americans are looking to enter the cryptocurrency industry over the coming year or so.
While the study estimates 25 million Americans will do so, that figure should not be taken too seriously. It seems more plausible a maximum of 10% of that figure contemplates making this move. Given the current financial turmoil in the US, financial diversification becomes a necessity. Bitcoin is still a worthwhile investment. It always has the potential to yield a profit, either in the short- or long-term.
Average Holders’ Balance
Until now, no one really knows how much cryptocurrency the average user owns. Due to wild price fluctuations every single week, it is nearly impossible to make an educated guess. Nobl Insurance claims the average amount – owned by 37% of holders – sits close to $5,000. It is half a Bitcoin’s worth of cryptocurrency, tokens, and assets. Not an impossible figure, although it is impossible to draw any real conclusions.
In the same report, the company opts 8% of crypto owners hold over $50,000 in assets. That figure is not as high as some community members expected initially. With altcoins bleeding value all over the place, the average portfolio balance has been dragged down significantly in recent years. Again, this data is taken from a minute sample size, and will not represent the cryptocurrency community as a whole.
Asset Protection is a Must
One interesting tidbit of information in the report comes in the form of asset protection. A growing number of exchange and platform hacks has investors concerned. So much even that some are looking for proper asset protection. Their quest may take them down some deep rabbit holes. Right now, there is no such thing as insuring one’s cryptocurrency portfolio.
That situation may – and perhaps should – change in the years ahead. At the same time, most investors store funds on third-party platforms and never properly own their assets. It seems unlikely insurance will do much to help them recover funds in that regard. Additionally, any hack or theft occurring due to a lack of security on the user’s part will not be covered by insurance either. The best insurance comes by users taking matters into their own hands properly.
Disclaimer: This is not trading or investment advice. The above article is for entertainment and education purposes only. Please do your own research before purchasing or investing into any cryptocurrency or digital currency.
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JP Buntinx, Khareem Sudlow