November 16, 2017 (The Ferowich Report) — While Bitcoin approaches new highs close to the $8,000 price level, a new survey finds 564 American bitcoin investors will only be willing to liquidate all BTC holdings when the price of a coin hits $196,165.
LendEDU conducted the survey from November 9, 2017 to November 13, 2017 and published the results Wednesday. LendEDU worked with Pollfish to carry out the survey and “instructed Pollfish to screen for consumers who invested in Bitcoin by passing through multiple screen questions.”
Hodl is a meme that originated in 2013 on a bitcoin trading forum in which a trader misspelled hold after putting a dent into a bottle of whiskey. Hodl is basically just sitting on your digital assets instead of buying or selling.
- 62 percent believed bitcoin is a “long-term store of value, like gold or silver,” or “a world changing technology.
- About 32 percent of bitcoin investors said they plan to hold for at least seven more years.
- 15 percent said they started trading after a “friend, family member or another trustworthy source” swayed them to join the cryptoasset investment space, leading LendEDU to conclude “bitcoin has a powerful word of mouth factor” in convincing people to become bitcoin buyers.
- 32 percent sold bitcoin since starting to trade the currency, while 16 percent of respondents said they don’t plan to hold bitcoin for more than one year. The data suggests there’s a significant cohort of bitcoin traders who are only in it to make quick profits.
- The distribution of bitcoin wealth has a fat-tail on the upper bound of bitcoin holders, which is to say a small number of bitcoin investors own a massive share in bitcoin wealth. it’s much hard to extrapolate characteristics about a sample to characteristics about a population when this is the case. A study on price targets for the bitcoin-abundant traders would provide more robust estimates for where the currency might top off.
- “On average, respondents reported that the current value of their Bitcoin investment was $2,930.85. At the time of the survey completion, the price per Bitcoin was $6,490,” LendEDU notes. The reason this might be problematic is that it suggests the survey may not be representative of the bitcoin demand curve on aggregate.
- Suppose then that the average bitcoin holdings of a survey respondent were roughly 0.5 BTC. According to BlockLink.info, the average survey respondent would fall in the 20-25 percentile in terms of bitcoin wealth. Just 2.5 million out of an estimated 25 million bitcoin holders own 50 percent of all bitcoin wealth, BlockLink data show.
- Ultimately, the preferences of this survey sample, which plan to hodl until bitcoin prices reach nearly $200,000, are unlikely to be representative of the bitcoin community as a whole. It still paints an interesting picture, though, of what some US bitcoin traders think about the cryptocurrency.