What do those who own bitcoins really spend them on?
Despite the increasing popularity of bitcoins, it’s not always easy to put your crypto to use, with certain retailers refusing to accept it altogether. Although early bitcoin spenders used them to pay for things as trivial as pizza, today’s owners are much more selective in their investments.
The BonusInisder team surveyed 1115 bitcoin adopters from the US to learn more about their spending habits.
As it turned out, on average, the majority either process no transactions on a monthly basis (34%) or make up to nine transactions (39%.) Only 10% reported processing over 20 transactions monthly.
The majority of owners (33%) use their bitcoins to speculate and actively trade NFTs, while a close 28% see it as an investment only. 16% of the respondents, in turn, use it to pay for online services, 11% – cash out to cover current expenses, 7% – to buy luxury items, and 5% – to gamble online. It’s visible that casual spenders make up for a small portion of bitcoin owners while traders actively use it.
Additionally, the majority of bitcoin owners (44%) hold up to three other types of cryptocurrency, while 27% hold up to six additional cryptocurrencies. Much of it is likely due to the crash of crypto markets in recent years, with bitcoin losing over 50% of its original value.
The report points out that bitcoin is increasingly acting like a risk asset, with many using it to speculate on crypto markets.
Yet, for those who hold it as an investment only, it saves hope for a bright future of billions in value. Is that a safe approach?
“Experts believe that we will reach the supply cap around the year 2078, so most people should be safe keeping a bit of crypto in their wallets for the next few years."
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