The tendency of investors to prioritize traditional metrics over cryptocurrency-specific factors has implications for both Bitcoin Network and Bitcoin Origin. The Digital Disclosure Survey conducted by Broadridge Financial Solutions highlights the fact that key metrics such as tokens and network performance are often overlooked by investors. This finding raises questions about the extent to which investors understand the fundamental aspects of Bitcoin and its underlying technology.
As the largest and most popular cryptocurrency, Bitcoin acts as a decentralized network and digital asset. Network performance, one of the metrics that investors usually ignore, is crucial to assessing the health and functionality of the Bitcoin network. But only 28% of the participants considered it important, placing it outside the top five factors. Understanding how the network works, how resilient it is to change and disruption and the different projects currently being built on Bitcoin is vital information for any investor in the market.
Moreover, the study’s findings regarding investors’ preference for traditional finance metrics highlights a potential gap in their understanding of bitcoin as an asset. Tokenomics, the economic aspects of a coin, play an important role in determining its future value and supply. Despite this, only 16% of the respondents indicated that tokens were a factor they considered. By ignoring the hard tokens that serve as the basis for bitcoin, investors may be missing out on important insights into the potential long-term sustainability and growth prospects of bitcoin.
The survey results also have implications for Bitcoin’s transparency and trustworthiness as an asset. Rob Krugman, Chief Digital Officer at Broadridge, emphasized the importance of transparency to the survival and growth of the market. Strengthening disclosure practices and providing standardized, easily accessible metrics for tracking bitcoin’s performance can boost confidence among investors, and help lead to approval for developments such as the Bitcoin spot ETF.
Moreover, the study revealed that 65% of investors view their cryptocurrency holdings as long-term investments that align with the popular perception of bitcoin as a store of value. Bitcoin’s limited supply and decentralized nature have attracted long-term investors looking for an alternative to traditional fiat currencies and stored-value assets such as gold.
Overall, the Digital Disclosure survey emphasized the need for Bitcoin participating investors to consider a wide range of metrics that apply specifically to cryptocurrencies. By learning about the importance of network performance, tokens, and other crypto-specific factors, investors can make more informed decisions about the viability and attractiveness of bitcoin as a network and asset.
