A study from the International Organization of Securities Commissions (IOSCO) says that small buyers are becoming more interested in cryptocurrencies, even though the market is volatile and there are risks. In the past four years, the number of crypto owners among individual buyers has grown greatly, with adoption rates rising significantly in a number of places.
In 2022, IOSCO polled 24 countries and found that 10% or more of their retail buyers held cryptocurrencies. Six places said that more than 30% of their clients had digital assets. This is a huge jump from 2020, when the number of small owners with crypto assets in many places was between 1% and 5%.
Even though the market went down a lot during the “crypto winter” of 2022, when prices dropped by 73%, regular people have kept buying cryptocurrency. This trend can be seen in both developed and developing markets, which shows that people all over the world want digital goods.
But there are big risks that come with this growing desire. IOSCO says that problems like unstable markets, investors who don’t know enough about the market, weak legal systems, and the rise of scams are still big worries. We saw many of these risks coming in 2020, but as the market has changed, they have become even bigger. A lot of big fails, hacks, and fraud have happened in this area, which has cost investors a lot of money.
A lot of this demand comes from small buyers, especially those under 40. Nearly 60% of buyers under the age of 35 in places like the US have thought about investing in crypto, and over half of them are already doing so. 44% of people ages 18 to 25 who are new to investing started with crypto. This shows how much Gen Z has accepted digital assets.
Fear of missing out (FOMO), speculative potential, low startup costs, and suggestions from friends or social media are some of the reasons why new investors are more likely to get into the crypto market than more experienced investors.
Even though there are problems, small buyers are still interested in cryptocurrencies because they could pay off. The IOSCO study stresses the need for stricter rules and better education to keep buyers safe and help them handle risks in a market that is changing so quickly.
As more and more regular people become interested in cryptocurrencies, it’s more important than ever to set up safety measures and teaching materials. This will help people who are new to the market learn how to handle the complicated world of crypto investments and stay away from fraud and scams. The number of people who own crypto doesn’t seem to be slowing down, so protecting investors is very important as the market grows.
