U.S. Consumers Say Crypto Is Here to Stay, Stablecoins Maybe Not: Deutsche Bank

As a seasoned researcher with over two decades of experience in the financial industry, I have witnessed the ebb and flow of various investment trends. The recent Deutsche Bank survey on consumer sentiment towards cryptocurrency has piqued my interest, especially given the dynamic nature of this relatively new asset class.

As an analyst, I’ve noticed a significant shift in the perception of cryptocurrencies among U.S. consumers. In contrast to past years, fewer than 1% now view crypto as a mere fad, according to a recent report by Deutsche Bank.

Approximately 50% of the participants in a recent survey consider cryptocurrency as a significant investment category and means of transaction, with 65% expressing their belief that it could potentially replace traditional cash. The bank conducted this survey among approximately 3,600 consumers residing in the U.S., U.K., and Europe between March and July.

Analysts Marion Laboure and Sai Ravindran believe that the spread of cryptocurrency accessibility will likely progress significantly over the next 2-3 years due to exchange-traded funds (ETFs), monetary policies by the Federal Reserve, and regulatory decisions.

In simpler terms, it seems that Bitcoin, the biggest cryptocurrency globally, is predicted to have a less optimistic trajectory for the remainder of this year. Meanwhile, stablecoins, which are crucial to the decentralized finance (DeFi) sector, appear uncertain in the perception of respondents regarding their future.

Approximately one-third of consumers believe that Bitcoin’s price will fall below $60,000 by the end of the year, whereas only around 12% to 14% anticipate it surpassing $70,000. At the time of publication, Bitcoin was valued around $58,200. As for the long-term outlook, opinions were divided: about 40% of respondents predict a prosperous future for Bitcoin, while nearly 38% foresee it fading away.

The perspective on stablecoins, a form of cryptocurrency intended to maintain a consistent worth, was met with caution. Only 18% of those polled anticipated them to prosper, while a significant 42% predicted they would decline. Those supported by a traditional currency like the dollar or a conventional commodity such as gold were more likely to retain their value, according to the survey.

Over half of consumers have expressed worry that a cryptocurrency might fail within the next two years.

The use of cryptocurrencies has been consistent in the United States and the United Kingdom over the past few years, and it appears that the retail market is poised for a resurgence, as suggested by Gemini’s ‘2024 Global State of Crypto’ report, which was released earlier this week.