November 17, 2022
According to new research from one of the world’s leading central bank institutions, the Bank of International Settlements, approximately 73 to 81 percent of newfound bitcoin investors and retail Bitcoin buyers have lost money when putting their funds into the great crypto game and are likely to be in the negative on their investment (BIS).
The bank examined the crypto world from 2015 to 2022 and discovered evidence that these new crypto investors lost money on their initial investment. During that time, the majority of crypto investors came from Turkey, Singapore, the United Kingdom, and the United States.
In other words, the Bitcoin purchased by the investors is now worth less. 73 percent less in the previous year, and up 155 percent in the previous five years These losses are only realized when the property is sold.
The paper also discovered that as the price of Bitcoin rises, more people download and use cryptocurrency exchange apps. The researchers discovered that these users are disproportionately younger and male, who fuels the profits of larger investors, and sell their holdings as new market participants drive up the price.
According to the survey, the majority of exchange application downloads occurred while BTC was still trading above $20,000. The study analyzed data from approximately 95 countries and discovered that retail investors purchased an average of $100 worth of Bitcoin per month. According to this data, approximately 81% of retail investors are currently losing money.
This occurrence raises concerns about investing in cryptocurrency. The BIS considers the crypto ecosystem to be one of the riskiest investments available to anyone. Furthermore, its current implementation may be detrimental to the economy.
The sources for this piece include an article in TheRegister.
