According to the CEO of the crypto exchange Luno, Marcus Swanepoel, the majority of clients of any crypto exchange, mainly use bitcoin as an instrument for investments and speculation.
Swanepoel also stated that transacting, usually comprises a very small share of the cryptocurrency’s use cases. During his CNBC interview, from earlier this week, he explained that only a very small portion of bitcoin’s users, actually purchase it to use it for transactions. He states that the vast majority of bitcoin are done by either investors, established whales, crypto exchanges or speculators.
“I would put about 90% of purchases into the category of investments and speculations. This is basically anyone who has a long-term view on bitcoin. People who like to trade bitcoin and use it for purchases and/or transactions would be 10% at best.”
Swanepoel also underlined that’s incredibly important that when investment portfolios are managed, a little bit of money is put in crypto. He said that the overwhelming majority of investors do this despite the high risk simply because the returns are astronomical.
Speculation and investing is the name of the game
What’s more interesting to note, is that even though bitcoin is mainly purchased for investing, that investment is almost entirely long-term.
Bitcoin whales haven’t been asleep at all throughout last year’s bear market. The study shows that most bitcoin whales were very active while the market was rough and managed to accumulate over a total of 450 000 BTC in less than 9 months.
Swanepoel is certain that this trend will remain. If the majority of whales didn’t sell during the all-time high back in the beginning of 2018, they are clearly waiting for even greater heights. Swanepoel thinks that in the future, more and more investors will heavily switch their portfolios to have a larger percentage of cryptocurrencies.
You can also check out:
- Crypto Whales Are Getting Bigger: Bigger Cashouts on the Horizon - Nov 20, 2019
- Phineas Fisher: $100K Bounty in Crypto for Incriminating Corporations - Nov 19, 2019
- Global Debt Blowing Up With $12 Trillion for 1 Year - Nov 18, 2019
- Facebook Pay is Official: Libra’s Regulatory Struggles Are Irrelevant - Nov 13, 2019
- Dutch Court: Fake Bitcoin Ads Must be Removed from Facebook - Nov 12, 2019
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Tags:bitcoin long-term investingbitcoin transaction feesbitcoin transaction usebitcoin usebitcon investments and speculation