A new study revealed that about 75% of people that invested in bitcoin have lost money.
The study was done by economists at the Bank of International Settlements, who studied the data of the investors in crypto in 95 markets between 2015 and 2022.
During the said study period, the price of bitcoin went from USD250 in August 2015 to USD69,000 in November 2021. Albeit, as of writing, bitcoin’s trading price dropped to USD16,500.
The study also revealed the spike in people’s interest in crypto as the number of people who use smartphone apps to trade crypto rose from 119,000 to a whopping 32.5 million during the said period.
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“Our analysis has shown that, around the world, bitcoin price increases have been tied to greater entry by retail investors,” the study said.
They added that “as prices were rising and smaller users were buying bitcoin, the largest holders (the so-called ‘whales’ or ‘humpbacks’) were selling –- making a return at the smaller users’ expense.”
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The researchers didn’t have direct data on the gains and losses of each individual investor. Although, they were able to extrapolate numbers based on the bitcoin price when they started using trading apps and the roughly USD20,000 price of bitcoin last month.
It also said that the biggest number of new crypto investors were men aged 35 and below, or the most “risk-seeking” members of the population as they call it.
Researchers discovered that crypto investors think that it is a speculative investment and that the said men are usually more active during the months after a big increase in bitcoin price.
The said spike in investors after price jumps could mean that there may be a need for more consumer protection.
Via: Barron’s