Marcus Swanepoel, CEO of cryptocurrency exchange Luno said during an interview with CNBC that 90% of its users use Bitcoin as an instrument for investing and speculating. Only 10% bitcoin holders use the crypto for transactions.
At the same time, nearly all are either investors or speculators:
“Roughly about 90% I would put into the category of investments slash speculations, so it could be people who have a long term view on it, people who like to trade it and about 10% would be transactions.”
Swanepoel also highlighted “it does make sense to put a tiny little bit of money into cryptocurrency” when managing investment portfolios — while risk is high, the ROI are astronomical.
As previously reported, this July amount of untouched Bitcoins, coins which haven’t been transferred from wallets, has risen significantly over the past five years. Thus, Bitcoin is steadily becoming more of a store of value than a medium of exchange.
At the same time, cryptanalysts fear that low Bitcoin circulation may lead to a decrease in volatility that could make the asset mirror the price action of commodities like gold.
Investors are increasingly considering Bitcoin as a hedge, particularly as central banks around the globe are showing no signs of stopping their policy of monetary easing.