According to a survey, some cryptocurrency investors have earned life-changing amounts of cash that have allowed them to quit a job.
Out of the 1,200 crypto enthusiasts responding to the research, one in eight has stashed crypto worth more than $150,000 and either stopped working or knows someone who has.
The survey, by the US, think tank Civic Science, also revealed that 37 per cent of those giving up work had made between $25,000 and $50,000 from crypto trading, while 15 per cent garnered between $50,000 and $75,000 and 13 per cent cash in between $75,000 and $150,000.
Civic Science explained that the data showed investing in cryptocurrency may have given some traders life-changing amounts of income.
“We also found that wealthier crypto buyers use their holdings as asset diversification within their investment portfolios rather than a source of income,” said a spokesman.
The study went on to look at how many people described themselves as crypto investors.
More than a third (38 per cent) admitted they were active traders with crypto investments. Another 34 per cent admitted they owned crypto and occasionally traded, while only nine per cent said they invested in crypto but did not trade.
In total, three out of four investors regularly trade crypto.
Table of contents
Cryptocurrency: Investor activity
| Investor type | Invested | Plan to invest | No investment |
| Active trader | 38% | 3% | 59% |
| Occasional trader | 34% | 9% | 57% |
| Long-term investor | 19% | 8% | 73% |
| Pension investor | 15% | 14% | 71% |
| None of the above | 9% | 8% | 83% |
A key takeaway was that active or occasional stock market trader are more likely to invest in cryptocurrency.
Cryptocurrency Or Volatile Stock?
“At its inception, cryptocurrency, and the blockchain technology behind it, was intended to provide a form of digital currency that was independent of government involvement, protecting it from periodic economic collapse, while also remaining safe, secure, and relatively anonymous, which also made it a haven for some criminal financial activity,” says the study.
“But in its current function, it has begun to resemble a highly volatile stock closely.”
Investors seem to have difficulty deciding if cryptocurrency is a long-term investment for growth or a short-term trade to turn over for a quick profit.
Just under one in four plumped for a quick profit, while just over one in four is seeking long-term growth, which, says the think tank, shows more than half of people treat crypto as a traditional stock.
Why investors buy crypto
| Investment type | Reason to buy |
| Short-term | 23% |
| Long-term | 28% |
| Easy, fast and safe transactions | 16% |
| Hedge against inflation | 11% |
| Independent from governments | 12% |
| Other | 11% |
Who Invests In Cryptocurrency?
Interestingly, younger investors are keener to buy cryptocurrency as a long-term asset with growth potential.
Older cryptocurrency buyers – those over 55 years old – are more likely to invest for short-term profit and say independence from government or central bank regulation is an important factor in buying.
Why buy cryptocurrency?
| Age | Short-term investment | Long-term investment | Easy, safe transactions | Inflation hedge | Regulatory independence | Other |
| 18 – 24 | 19% | 36% | 25% | 10% | 9% | 5% |
| 25 – 34 | 19% | 34% | 22% | 10% | 7% | 7% |
| 35 – 54 | 23% | 26% | 11% | 10% | 16% | 14% |
| Over 55 | 28% | 15% | 9% | 12% | 19% | 20% |
Opinion across all age groups is divided about if they are wealthier because of their cryptocurrency investments than they were a year ago.
“Among those who do have crypto investments, nearly 60% of respondents are practically evenly divided as either being wealthier than they were last year, or at the same level of wealth,” said the pollsters.
Has crypto made investors richer?
| Investor sentiment | Response |
| I am wealthier than last year | 29% |
| I am wealthier than two years ago | 13% |
| I am wealthier than five years ago | 13% |
| I am no wealthier than I was | 29% |
| I am poorer than I was | 16% |
The study also looked at how much, if any, buying cryptocurrency made investors wealthier.
| Income band | Wealthier than a year ago | Wealthier than two years ago | Wealthier than five years ago | No change in level of wealth | Poorer than a year ago |
| Less than $25,000 | 27% | 14% | 11% | 28% | 20% |
| $25,001 – $50,000 | 19% | 24% | 18% | 25% | 14% |
| $50,001 – $75,000 | 25% | 16% | 16% | 26% | 17% |
| $75,001 – $150,000 | 30% | 8% | 14% | 34% | 15% |
| More than $150,000 | 42% | 9% | 6% | 29% | 14% |
“Regardless of wealth gained, however, just barely more than one out of ten crypto investors expect to be wealthier than their parents due to their investments,” said the report.
“This positive sentiment is largely driven by Gen Z and young Millennials, as respondents under 34 are more likely to think crypto is a way to surpass the levels of wealth afforded by their parents.”
Will Crypto Make You Wealthier Than Your Parents?
Only one in eight cryptocurrency investors believe they will become wealthier than their mums and dads.
A resounding 72 per cent think their parents will accrue more wealth.
The youngest age groups feel their wealth will eclipse that of their parents, while the rest are unsure.
Wealth expectation by age
| Age group | Yes | Unsure | No |
| 18 – 24 | 21% | 37% | 42% |
| 25 – 34 | 15% | 21% | 63% |
| 35 – 54 | 10% | 11% | 79% |
| Over 55 | 3% | 6% | 91% |
“Ultimately, regulations and continued evolutions in fintech instruments will shift how crypto is used and perceived. But as of now, the blockchain technology seems to have shredded off its anti-establishment roots, to be embraced by a diverse set of active stock traders and individuals with various income levels,” ended the study.
Cryptocurrency FAQ
Who are Millennials and Gen Z?
The ‘gen’ stands for generation. Millennials are Gen Y. The age members define the groups become adults:
| Generation | Born | Age |
| Gen Z | 1997 – 2012 | 10 – 25 |
| Gen Y (Millennials) | 1981 – 1996 | 26 – 41 |
| Gen X | 1965 – 1980 | 42 – 57 |
| Boomers ll | 1955 -1964 | 58 – 67 |
| Boomers l | 1946 – 1954 | 68 – 76 |
| Post War | 1928 – 1945 | 77 – 94 |
| World War ll | 1922 – 1927 | 95 – 100 |
Cryptocurrency is a decentralised encrypted payment system with transactions verified by peer-2-peer computers rather than a central server. The best-known cryptos are Bitcoin and Ethereum.
Opinions differ on which are the main cryptocurrencies for investors, but the five largest by market capitalisation are Bitcoin, Ether, Tether, USD Coin and BNB. Bitcoin, with a market cap of $445 billion is by far the most dominant, with a 33 per cent share of the total market worth $1.2 trillion. Ethereum has a cap of $200 million, which represents a 15 per cent market share.
A blockchain is a technology that verifies and tracks cryptocurrency transactions and ownership on a tamper-proof public ledger decentralised across a network. So, a blockchain allows the recording and sharing of information but is not editable. Each block is the same size, and when a block is full of data, another is added, making the chain.
One of the attractions of cryptocurrency for investors is that the technology extends across borders and is not controlled by governments or central banks. Crypto is not legal tender anywhere other than a clutch of small countries and island states. The largest is the Central American republic of El Salvador.
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