The year 2020 witnessed a lot of change in almost every industry and field as the COVID-19 pandemic spread like wildfire across the world. While tech sector and cryptocurrency were booming, small businesses and tourism industries faced a tough time. Additionally, we can also see changes in investing behavior and choices of many individuals.
The world of investing faced a full spectrum of changes depending on the investment tool. Cryptocurrencies like Bitcoin reached new highs with an almost 250% growth rate in a decade, and stocks were a popular investment option too. Overall, the year was a period of tremendous growth.
US and Japan, two technologically advanced and developed nations were also affected by the pandemic. Research by bitFlyer hints that 82% of people in the US invest in financial assets. On the other hand, 69% of the people of Japan do not invest in financial assets. This is a big difference between the two regions. In this article, we will dig deeper into this research conducted on the state of investing and cryptocurrencies while comparing both countries.
State of Investing
After last year’s turn of events, most people in both regions feel that 2021 has to witness a financial rebound and people are looking forward to a new and stable financial year. People believe that investing in financial assets is a great way to build wealth fast and conveniently. A drop in interest rates is another reason why people are all-in for investing.
In the US, a major reason why some amount of the population is not willing to invest their income in 2021 is the financial crisis the Covid-19 pandemic has created. COVID-19 affected the livelihood of a large population and according to the data, 40% of the lower-income population is less likely to invest. The change in power and the recent surge in COVID-19 cases have also instilled a fear of uncertainty among them.
Meanwhile, in Japan, the reason people are unwilling to invest is completely different. The COVID-19 pandemic also affected the lives of people in Japan but the investment is not a go-to option because of the risks associated with it. People in Japan are more cautious with their money and they also don’t want to invest in anything where there is the slightest chance of losing their money.
State of Cryptocurrency
The gap in the usage of Cryptocurrency between Japan and America is quite wide with 22% of American respondents have invested in crypto at some time, which is over four times higher than Japan.
Also, 76% of the respondents in the US who have heard about cryptocurrencies have a positive perception of cryptocurrencies as an investment. 78% of people in Japan have a completely opposite opinion.
People are willing to invest in cryptocurrencies because of the increase in popularity and the remarkable price hike they witnessed last year. The reasons for Cryptocurrency being an extremely popular investment are similar in Japan as well as the US. Many respondents have also highlighted crypto’s value propositions and believe in its long-term value.
Cryptocurrencies have been in the market for a while now. Somehow most people are either unaware of it or find it complicated to invest in. The year 2020 was the year cryptocurrencies gained popularity with large organizations investing in them. But, concerns about the security risk and extreme volatility persists. Needless to say that this is part of the newly formed investment avenue.
While 54% of American respondents believe that stocks are going to a popular investment option in the year 2021. With 30% feeling cryptocurrencies are an attractive investment opportunity in the country, beating Gold. A lot of experience, as well as inexperienced Crypto-investors, have a positive outlook about it in the longer run.
More Americans are optimistic about investing in financial assets or cryptocurrency. The Japanese are still conservative about the willingness to invest their income in something that involves risk.
While the major reason for Americans choosing not to invest is the lack of resources. On the other hand, Japanese respondents are simply reluctant about it. Despite this attitude, Japan is one of the most important and structured regulatory frameworks in the world.
Cryptocurrencies seem to have a bright future in America. A majority of respondents are positive about their growth and returns.