Why do people buy crypto and is it a good investment?

Following the collapse of FTX at the end of 2022, many people are doubting (even more so than before) whether cryptocurrencies have a future. According to a YouGov poll of 1,000 US adults surveyed in the summer of 2022, people buy cryptocurrencies for the following reasons:

1. For fun or out of curiosity (52%)
2. For investment purposes (26%)
3. To make purchases (18%)
4. Other (3%)

The majority of respondents (44%) felt cryptocurrencies wouldn’t eventually replace cash and a similar percentage weren’t sure. It is likely the recent collapse of FTX will have skewed public opinion further towards crypto not replacing cash. The majority of respondents also felt cryptocurrencies were a bad investment. When asked how good or bad they thought crypto was as an investment, they responded with:

1. Somewhat or very bad (41%)
2. Not sure (33%)
3. Neither good or bad (14%)
4. Somewhat or very good (13%)

Source: YouGovAmerica