The Silicon Valley venture capital firm Andreessen Horowitz (a16z) released a report on Tuesday covering the current state of crypto adoption. It highlights Ethereum as the leading blockchain network for developer support but contains very little mention of Bitcoin’s growth. The Potential of Web 3 The VC firm broke boiled down its report into five key takeaways about the current state of crypto. It began by suggesting that the industry is in the middle of its fourth ‘price innovation’ cycle.…
Based on a recent survey metrics, 77% of Russian investors take bitcoin or cryptocurrency as a superior investment tool than gold. Only 9% believe that gold is a better investment option. There was also another 14% who stated that they believe that familiar national currencies are the best choice.
For the longest time, people have considered gold the safest and most common form of investment when it comes to investments. However, cryptocurrency adoption is spreading like a bushfire. People are increasingly inclined to them as alternative investments.
Cryptocurrency Preference in Russia
The Russia Association of Forex Dealers survey uncovered that about 77% of local investors found crypto the most forward-looking investment. They do not consider them as hype but rather a worthy investment. Also, 35% of these already trade in digital assets.
Another 23% had no experience with cryptocurrencies. Notably, about 80% of the participants had a plan to venture more into cryptocurrencies in the future. Only 8% had an issue with cryptocurrencies and had no plans of investing in them any time soon.
Folks are warming to cryptocurrencies; there are still other investment choices in Russia. However, more than 50% of the participants still chose to go with cryptocurrencies.
Bitcoin is the New Gold
Bitcoin has a fixed supply. There are only 21 million bitcoins that can be mined and issued. Compared to the unknown supply of gold, bitcoin will hold the most supply and demand value in the long run. In 2012, when bitcoin was only $1, the price of gold was $1,700. Fast forward to 202. While the price of a bitcoin is at around $45,000, gold has remained at $1,700.
Users can also verify the authenticity of Bitcoin over blockchain technology. It is an easy, fast process compared to the lengthy and costly gold verification process.
Bitcoin holds more liquidity, and transfer from one person to another is fast. When converting the gold to cash, governing restrictions come into play quite often. On the other hand, Bitcoin is decentralized, and conversion over various platforms takes a minute or less.
Authorities Don’t Support
Even with the hype surrounding cryptocurrencies among Russians, the authorities think otherwise. They are treating digital assets with a hostile stance.
Chief of Russian Central Bank, Elvira Nabiullina, recently stated that cryptos are very hostile. She continued, saying that they should warn investors of the high chances of loss. In addition, she said that investing in them is dangerous, and the citizens need to be aware of what they are choosing to invest in to earn.
Another official, Sergey Shvetsov, a member of the Bank of Russia Board of Directors, has the same perspective. He compared the risk involved in crypto investment to entering a minefield. When one enters a minefield, he can only rely on himself, and no one can protect him. Hence, the risk is too much to walk into ventures that the Russian government does not oversee. If investors lose their money, there is nothing they can do about it.