The 2022 crypto winter and the subsequent large industry fallouts left the crypto community questioning the safety of their investments. However, a recent survey by Paxos showed that trust in centralized custodians remains high despite the turbulent year.
The survey also highlighted consumer behavior and confidence in the crypto ecosystem, indicating a growing demand for traditional financial institutions to join the crypto economy.
Confidence and trust in crypto remain high
More than 75% of people surveyed indicated that they are confident in the future of cryptocurrency, despite the disruptive end to 2022.
The results indicated no change in how respondents felt 12 months ago, indicating that confidence in crypto markets remains unchanged. Additionally, 72% of respondents reported that they are not worried about the volatility of crypto markets seen over the past year.
The survey showed that crypto owners are not just interested in investing in digital assets, but also in using them for everyday financial transactions.
Approximately 42% of respondents expressed interest in using crypto to pay for goods or services, while 38% were interested in earning crypto as a credit card or loyalty program reward.
Furthermore, 34% of respondents showed an interest in using crypto to send money to friends or family. The survey highlighted a growing demand for more traditional financial institutions to join the crypto economy.
The interest has not waned, as 75% of respondents indicated that they would be likely or very likely to purchase crypto from their primary bank if it were offered. This underscores the growing consumer desire to bring crypto into their everyday financial lives.
Crypto owners trust intermediaries to hold their crypto
Despite the high-profile collapses and underlying poor risk management practices seen in several crypto companies, the survey showed that crypto owners still trust intermediaries to hold their crypto.
A staggering 89% of respondents reported that they trust banks, crypto exchanges, and/or mobile payment apps to hold their crypto.
The survey indicated that crypto owners use a variety of resources to inform their investment decision-making. While crypto-specific websites were the top resource, no single source was used by more than 50% of respondents.
This fragmented market presents a significant opportunity for companies to engage current and prospective crypto customers with effective marketing, advertising, and educational efforts.
