Three Out of Four Bitcoin Investors Have Lost Money Since 2015, Study Finds

Roughly three-quarters of people that have purchased Bitcoin have misplaced cash in keeping with a research revealed Monday because the cryptocurrency sector reels from the collapse of a serious change that has sapped confidence.

Economists on the Bank of International Settlements, an establishment broadly thought-about because the central financial institution of central banks, analysed information on traders in cryptocurrencies in 95 international locations between 2015 and 2022.

“Overall, back of the envelope calculations suggest that around three-quarters of users have lost money on their Bitcoin investments,” they mentioned of their research.

During the interval studied, the worth of Bitcoin rose from $250 (roughly Rs. 20,000) in August 2015 to peak at practically $69,000 (roughly Rs. 56,17,700) in November 2021. It is now buying and selling at round $16,500 (roughly Rs. 13,43,300).

The variety of folks utilizing smartphone apps permitting one to buy and promote cryptocurrencies rose from 119,000 to 32.5 million throughout the identical interval.

“Our analysis has shown that, around the world, Bitcoin price increases have been tied to greater entry by retail investors,” the researchers wrote.

Moreover, they mentioned they discovered 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.”

The researchers didn’t have direct information on the features or losses of particular person traders. However, they had been capable of extrapolate primarily based on the worth of Bitcoin when new traders started utilizing cryptocurrency buying and selling apps and the roughly $20,000 (roughly Rs. 16,28,200) it was value final month.

The research additionally discovered that the largest section of recent cryptocurrency traders, at roughly 40 p.c, had been males underneath 35, and who’re generally recognized as essentially the most “risk-seeking” section of the inhabitants.

Researchers discovered most cryptocurrency traders noticed it as a speculative funding and that younger males tended to be extra energetic in buying and selling within the months after an enormous rise within the Bitcoin worth.

They mentioned the bounce in traders after worth will increase ought to elevate issues whether or not extra shopper safety is required.