November 24, 2022
  • November 24, 2022

Three out of four bitcoin investors lost money: study

By on November 14, 2022 0

“Overall, bottom-of-the-envelope calculations suggest that around three-quarters of users lost money on their bitcoin investments,” they said in their study.

During the period studied, the price of bitcoin rose from $250 in August 2015 to peak at nearly $69,000 in November 2021. It is now trading around $16,500.

The number of people using smartphone apps to buy and sell cryptocurrencies rose from 119,000 to 32.5 million over the same period.

“Our analysis showed that, worldwide, bitcoin price increases have been linked to greater entry by retail investors,” the researchers wrote.

Additionally, they said they found that “as prices rose and smaller users bought bitcoin, the larger holders (the so-called ‘whales’ or ‘humps’) sold – making a comeback at the expense of the smaller ones. users”.

The researchers did not have direct data on the gains or losses of individual investors. However, they were able to extrapolate based on bitcoin’s price when new investors started using cryptocurrency trading apps and the roughly $20,000 it was worth last month.

The study also found that the largest segment of new cryptocurrency investors, at around 40%, were men under the age of 35, and who are generally identified as the most “seeking” segment of the population. of risk”.

The researchers found that most cryptocurrency investors view it as a speculative investment, and younger men tend to be more active in trading in the months after a sharp rise in bitcoin’s price.

They said the increase in the number of investors after the price hike should raise concerns about the need for more consumer protection.