Tuesday, August 20, 2019

Europeans Becoming Wary Of Investing In Cryptocurrency Due to Volatility

Europeans are more cautious of cryptocurrency compared to those in emerging markets, and the primary cause of this appears to be the high volatility of digital assets. In light of this, Luno, a London-based cryptocurrency company conducted a research about how people from different regions view and use virtual currencies.

The Luno Survey was conducted across seven territories where 500 individuals with prior knowledge about cryptocurrency were consulted.

The survey shows that 47% of Europeans are not sure that cryptocurrencies are safe and profitable. But in emerging markets like Nigeria, South Africa and South East Asia, the reverse is the case. In fact people in these places tend to favour digital currencies more like Bitcoin and Ethereum. About 79% affirmed their belief in the profitability of cryptocurrencies.

In response to these fears, a number of stablecoins, which have ties to fiat money, have been launched. Examples of such fiat pegged stablecoins are Tether (USDT), USDC and the recently launched JP Morgan’s JPM Coin.

Government Regulation Expected To Ease Fear

About a third of those who partook in the survey in Europe and emerging markets admitted that their fears would have been calmed had the government taken measures to oversee the cryptocurrency market, which has led to more requests to the government to regulate cryptocurrency.

The survey revealed that the primary reason people purchase cryptocurrency is for investment purposes. About 82% of emerging markets participants and 58% of Europeans say it’s better than receiving payments and making online retail payments.

This proves that cryptocurrencies still needs to put in more work before they can be chosen to replace cash. Only 21% of Europeans have admitted to receiving payment in cryptocurrency.

Related Article:  Crypto Dump and Pump Scheme Analyzed In A New Academic Work

Digital Asset Volatility Hinders Adoption

Crypto volatility was responsible for the $20,000 surge in Bitcoin’s value in 2017 before it all came crashing down to around $3,000 in 2018

Sometimes, even before a transaction goes through, the value of cryptocurrency can change significantly within that space of time, but thankfully such issues are being eradicated by faster blockchain technologies.

Going by the numbers, emerging markets have shown to be more open to the use of cryptocurrency as 29% confirmed receiving payments in cryptocurrency.

Christian Zeiler, GM Europe from Luno said:

“It’s really interesting to see that even in times of uncertainty in the crypto market, consumers that don’t own any cryptocurrency are looking to get involved in the crypto space.”

“I still think there is a long way to go to get these consumers to buy cryptocurrency but we are leading the way in educating the general public in the benefits of cryptocurrencies and through our educational programmes and talks we hope that we can show the consumers that think cryptocurrencies are complicated that this is not the case and get them more involved in this evolving technology.”

More Articles

Bitcoin ATM Manufacturer, Lamassu Relocates to Switzerland Due to...

Lamassu, a Bitcoin ATM manufacturer, has relocated to Switzerland from Portugal due to regulatory issues and the inability to operate a bank account. The...

Coinhive To Shutdown Crypto Mining Services In March

Crypto mining service firm, Coinhive will stop operation in March due to the adverse effect of the lingering crypto winter market. The Coinhive team...

Wirex Enables 30 Million Canadians Shop With Cryptocurrencies Anywhere

Cryptocurrency card issuer, Wirex has expanded its operations to Canada, where the residents of the country will have the opportunity to use crypto as...

Bitmain Reports $500 Million Loss in Latest IPO Filing

Bitmain is living its nightmare in the early parts of 2019 after releasing a public report that showed the company lost about half a...

European Parliament Proposes the Use Blockchain Technology to Monitor...

The European Parliament (EP) during the week, proposed the use of Blockchain technology in global trade. This is a resolution tagged, "Blockchain: a forward-looking...

CoinFlux CEO Arrested on Charges of Embezzlement, May be...

The CEO of Romania-based Bitcoin exchange CoinFlux, Vlad Nistor has been arrested on behalf of the US government and will be extradited to the...

‘Cryptocurrency’,’Initial Coin Offering’ and ‘Blockchain Officially Added to Webster’s...

Merriam-Webster, one of the most popular dictionaries in the world, has just begun embracing the world of cryptocurrency with the addition of the words...

College Kids Are the Second Largest Group of Cryptocurrency...

A lot can be done with the free electricity at University campuses, and that includes mining cryptocurrencies from the school's dorm or library. That being...

400% Rise In CryptoJacking Cases Reported In 2018

As the year ends, the massive number of CryptoJacking cases seems to be going unlimited. This was reported by a cyber security company which...

IBM To Use Blockchain To Improve Scientific Researches

Based on a new patent called, "Blockchain for Open Scientific Research," International Business Machines Corporation (IBM) has made plans to rely on the trustworthiness of...

NYC Woman Used Cryptocurrencies To Finance ISIS

An NYC woman pleaded guilty yesterday on the charges of providing material support to a foreign terrorist organization. The woman had been researching how...

Criminal Faces Up To 5 Year Sentence for ICO...

Another day, more ICO scams. This time is Maksim Zaslavskiy, an ICO organizer that defrauded more than 1000 investors offering them inexistent Initial Coin Offerings....

Latest Articles

Why US-based people can’t bet with bitcoins at online...

Online gambling using bitcoin has been happening since the time when cryptocurrency came into being. In the initial days, gamblers used to opt for...

Couple Pays For Breakfast Using Bitcoin, Community Finds This...

A Reddit user by the username u/portageco recently made a post in bitcoin's official subreddit. In his post, u/portageco boasts about how he paid...

Australian Woman Leads Adoption, Tours 10 Countries Spending Cryptocurrencies

Who says you can't go around the world spending cryptocurrencies? As many believe, cryptocurrencies are only good for speculations. But with a little research,...

Did A Physical Bitcoin Just Sell For $99k On...

As at the time of reporting, the listing on eBay had closed. This could be because the seller got a buyer or he decided...

Litecoin Now Approved In 30,000+ Stores

As cryptocurrencies gain ground, more and more technology-based firms find ways to incorporate the nascent technology into everyday life. Moon, prior to this time,...

How To Shop on Amazon with Bitcoin – Step-By-Step...

Wondered how to shop on Amazon with bitcoin? Then here's how you can purchase goods on one of the largest e-commerce websites that ships...

How To Buy Bitcoin On Coinbase – Step-By-Step Guide

Buy Bitcoin on Coinbase instantly in the U.S., UK, Canada, or anywhere you are globally. Coinbase cryptocurrency exchange has enabled its customers buy the...

Grayscale Bitcoin Trust Boosts By 300%, Affects Oil &...

The institutional investment product, Grayscale Bitcoin Trust (GBTC), experienced a growth of more than 300% due to its outstanding performance since February, Forbes reports....

How To Create A Coinbase Account – Step-By-Step Guide

Create a Coinbase account with ease. Use this illustrative guide to create a Coinbase account for buying, selling, and storing cryptocurrencies. And you know...

$9.2 Trillion Transferred Using Bitcoins In 2.5 Years

Against present belief that bitcoin is only used for speculation, James McDowall, a crypto investor and advisor shared a metric about Bitcoin that's been...

Malware Posing as Movie File Manipulates Results and Steals...

A new form of malware posing as movie file was discovered last year and was designed to steal cryptocurrency and inject manipulated results into...