Bitcoin is the most well-known version of what is commonly known as cryptocurrency, a kind of value exchange that does not involve anything you can actually put your hands on.
Facebook recently announced plans to start its own form of cryptocurrency, but its initial design appears to be for use on Facebook’s marketplace only.
There are dozens of cryptocurrencies currently in use. Their value changes minute by minute. There continue to be news stories about "coins" valued in the tens of thousands and that is often followed by stories about those "coins" losing all of their value in some sort of cryptocurrency scam. For every well-known businessperson who endorses a cryptocurrency, there will be another businessperson who tells you to avoid cryptocurrencies because they are still so uncertain as an exchange of funds.
All cryptocurrencies have one factor in common. They all work off of a platform known as blockchain, which creates a digital record of ownership and transactions. While cryptocurrencies fluctuate in value and definition, blockchain is a solid system, and is certainly a product investors can invest in.
But like cryptocurrency, blockchain is a product most investors know little about and those who know remain skittish about the long-term stability of the entire digital currency industry.
In its monthly survey of investors, Spectrem asked investors to place their knowledge of blockchain on a 0-to-100 scale, and simply in terms of knowledge, the response was incredibly low, 17.89. That is an indication that very few investors know anything about the product, and that lack of knowledge offsets those who do know something about the blockchain phenomenon.
That response is nearly identical to the response from investor interest in investing in blockchain technology. Again, on a 100-point scale, overall interest was rated at 17.21. Even among Millennials, interest was rated at only 30.88. Among investors who claim to be knowledgeable about finance and investing, interest was only at 20.10.
There were some investors in the Spectrem survey who expressed greater interest in blockchain technology than others. Among them, 44 percent said they were interested in investing because “I think it is the wave of the future.” However, 45 percent said they planned to wait another year or two for all the technology kinks and market fluctuations to settle down.
©2019 Spectrem Group