Optimism for Bitcoin

Get to know yourselves! The first part of the evaluation of our vacation survey throws a general light on you – on the readers of this blog as representatives of the Bitcoin scene. We find out what attracts you to Bitcoin, how you use cryptocurrencies and, in general: what makes you happy and is important to you.

Generation

By generation, I mean when you found Bitcoin. This question is not completely unimportant, because depending on the generation, you were able to buy Bitcoins and other cryptocurrencies at low prices. In addition, it also shows how long you have (potentially) been watching what is happening and gaining experience with the technology. The result of this question is quite typical: Bitcoin accumulates people in waves.

Before 2011, hardly anyone found their way to Bitcoin, with the two big waves rushing in in 2013 and 2017 with many btc exchange coupons [1]. This had been known to me for some time. The dip in 2019, when as few Bitcoiners were made as before 2011, is interesting, as is the slight increase from 2020.

However, one might have expected that the extreme price increase in 2021 would also be accompanied by extreme hype that would bring many people to Bitcoin. That is not so, at least among our readers. Is it because the real hype hasn’t even broken out yet? Or was the local market already grazed in 2017, and now only a few stragglers are following?
Have you made money with crypto?

  1. The question whether you have made money with crypto is a bit strange. Of course you have! Looking at the price history, it’s hard to imagine that you haven’t made any profits.
  2. There were only a few opportunities to buy Bitcoins and now be left with a loss. After that, you really have to look with a magnifying glass, a few days, weeks maybe.
  3. Accordingly, I am rather disappointed with the result: Only 82 percent of you have made money with Krypt. 18 percent didn’t, which probably means they lost money. How was that possible? Did you access 40,000 or 50,000 euros? Or did you lose private keys, invest in shitcoins, blow bitcoins on scams?

How many cryptocurrencies do you own?

cryptocurrenciesOne of my standard and favorite questions is how many cryptocurrencies do you hold. As it turns out, many have 4-10 cryptocurrencies, 46 percent in total. Another 20 have even more than 10 cryptocurrencies, whereas 12 percent focus on a single currency – I assume that’s Bitcoin. But it could also be Ethereum or, knowing you guys, IOTA. 11 and 12 percent each have two or three coins. Not much has changed compared to previous surveys. You tended to hold more than 10 coins more often in early 2020 and May 2019, but the number of 4-10 coins seems to be settling, as is a small but steady portion of monocoiners.

This question is a tool to feel out the sentiment. How optimistic are you guys? From the looks of it, very. But see for yourself: 74 percent of you expect Bitcoin to reach a new all-time high in 2021. Therefore, only 26 percent of you think that we have already entered a bear market, which is so typical for Bitcoin and which I already speculated about in May.

At what price would you sell bitcoins?

This question is also used to guess the market sentiment. What price would Bitcoin have to reach for you to part with your digital coins? If you answer honestly, your statements also show at what prices we can expect waves of selling – at least from your side. And from the looks of it, it will take quite a long time for many of you to dump coins.

A few want to sell at 31,000 euros – I think these are the ones who have burned their fingers so far and are happy to come out with their skin intact – while 40,000 and 50,000 euros are pretty uninteresting thresholds for you.

At 75,000 euros, the desire to throw Bitcoins on the market awakens, even if only very quietly. Only at 100,000 euros do more want to sell, 200,000 euros are already less interesting again, and at 500,000 euros the first powerful wave of sales sets in.

From 75,000 euros, the desire to throw Bitcoins onto the market awakens, even if only very quietly. Only at 100,000 euros do more want to sell, 200,000 euros are already less interesting again, and at 500,000 euros the first powerful wave of sales sets in. But a very large part of you – 51 percent – have hands of steel and never want to sell their Bitcoins. Like the section before, this makes you optimistic! The bull market will not run aground on you.

What attracts you to cryptocurrencies?

With the following question, we move away from market sentiment to a more sociological realm: what makes cryptocurrencies interesting to you? For this, I presented you with six options and asked you to rank them in order of importance.

Monetary autonomy came in first by a wide margin. If you understand this term as much as I do, it appeals to you to be able to manage digital money independently: to receive, store, and send it without a middleman. Monetary autonomy is perhaps THE great promise of Bitcoin. Either you understand why it’s huge, or you don’t. Second place went to payments without an intermediary. This, as we will see in a moment, is curious. Shortly after comes the desire for hard cash, followed by the joy of experimenting with technology. Financial privacy then follows at some distance, and relatively far behind is the desire to trade and speculate.

So you are mainly attracted to cryptocurrencies by idealistic values – the autonomy, the elimination of middlemen, the stable money. Only then comes the pleasure, in technology and speculation, as well as the desire for privacy. My impression is that in earlier surveys, privacy and experimentation with technology ranked higher. Especially when you think about the value privacy has for many developers and how Bitcoiners like to tinker with Nodes and Lightning and Raspberry. Could it be that something has changed in this regard?

How you use cryptocurrencies

use cryptocurrenciesWhat appeals to you is often an ideal entity. As long as you have the free choice to say what you want, you will say what you want to want instead of what you really want. After all, words cost nothing.

Not for nothing, on the other hand, are actions. So I asked how and for what you use cryptocurrencies. This is the crux of the survey for me and will lead to some surprises.

“Trading on exchanges” – speculation, which is apparently so unimportant to you – gets the fewest “Never!” votes. Only five percent of you never trade. Many of you rarely or sometimes trade, and still quite a few often or very often (17 or 13 percent). Did I catch you in a contradiction there? Could it be that you wish to use crypto for meaningful, ideally valuable things – but in reality you mainly trade on exchanges?

After all, when it comes to monetary autonomy, you put your wishes into action: Many of you – 87 percent – use your own wallet, and many of you use it often or very often. The final consequence, to also operate your own full node, is done by just under 35 percent – which, all in all, is quite a lot, considering that there are 126 full nodes among you. You could say that you are a pillar of the Bitcoin network.

However, most of you refuse to take the further steps of the “good Bitcoiner”, namely to use offchain networks. 70 percent never use Lightning, 91 percent never use liquid sidechain. Much more popular than these “second layers” in Bitcoin are other currencies such as Ethereum, which only 25 percent never use. But even there, at just over 63 percent, most of you abstain from higher applications such as DeFi. Could it be that you, as crypto users, are not as innovation-minded after all as crypto-bloggers and other people in the scene like to imagine? Is it possible that Bitcoin is already a killer app in its own right, and doesn’t still need Liquid, Lightning, and DeFi? That all the bells and whistles are more of a selfie for nerds and programmers?

Somewhere in the middle ground between Commerce and Full Node on the one hand, and DeFi [2], Liquid and Lightning [3] on the other, you’ll find Pay and Get Paid: About a third of you have never received or paid money with cryptocurrencies; another third rarely do. As a means of payment, cryptocurrencies do not yet seem to have established themselves among you either.

Which brings us back to the fact that desire and reality often diverge: What appeals to you about Bitcoin is that you can pay without a middleman. But you only use it very rarely. Why is that? Is it because there are so few opportunities – or because the euro works quite well in everyday life?

[1] http://www.bitcoincoupons.org/binance/
[2] https://www.investopedia.com/decentralized-finance-defi-5113835
[3] https://cult.honeypot.io/reads/what-is-lightning-network-bitcoin/

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