Crypto payments have increased dramatically in 2020, as market data shows that investors are spending more than they are following a hodling strategy.
What investors spend cryptocurrency on and how much
According to a recent press release, BlockCard and the Bitcoin Market Journal have teamed up to collect market data from more than 35,000 crypto investors. In an environment where it was believed that most crypto investors “walk”, the results were very interesting. According to the survey, 70% of investors said they spent their cryptocurrency in the last 12 months. At this scale of research, it becomes clear that cryptocurrencies are no longer a HODling asset class (buy and hold).
As the market continues to evolve, various companies in the crypto space, such as BlockCard and BitPay, are raising awareness by connecting the traditional world with the digital one. According to a recent report from BitPay, there has been a significant increase in sellers supporting cryptocurrencies this year.
In a recent survey, 11% of respondents spent their cryptocurrency on food, while 12% spent it on entertainment. Most investors (75%) used digital exchanges and bought various cryptocurrencies.
One of the most interesting categories was rent. According to the study, about 5% of respondents sent their cryptocurrencies for rent. Since crypto assets have significantly greater growth potential than traditional currencies, it is believed that tenants are trying to save money by paying rent in cryptocurrency if the asset increases in value.
Alex Lielacher, editor of the Bitcoin Market Journal, commented on the results, stating:
“The conclusion is clear: from paying for basic necessities to covering education expenses, cryptocurrency holders use digital currencies as their daily expenses.”
BlockCard’s Ian Kane also added:
“While many Bitcoin thought leaders preach HODLing as the only way to interact with the asset, evidence suggests that holders of digital currencies are actually using their ‘magic Internet currencies’ simply as money.”
Studying spending habits can be important because it shows us how serious the switch to crypto payments can be. According to the data, about 32% of respondents spent between $ 1,000 and $ 10,000. This is important and shows that people can easily spend their cryptocurrency not only on microtransactions. Only 14.50% of investors have spent less than $ 100 in the past 12 months.
In conclusion, a recent survey conducted by BlockCard and Bitcoin Market Journal shows that cryptocurrencies are turning into something more than just assets for saving. If you look at the financial behavior of more than 35,000 blockchain investors, it becomes clear that consumers are finding value in crypto payments.
All this is happening in an environment where regulation and the tax code are still being finalized, or simply not available. As the industry becomes more transparent, cryptocurrency payments should happen quickly, as merchants are more willing to implement crypto into their infrastructure.