OTTAWA (CU)_The past few months have not been the best days for crypto currencies, with interventions from governments and tech tycoons leading to a downward trend in prices. Bitcoin has been under pressure ever since Elon Musk’s sudden enlightenment that cryptocurrency mining is not great for the environment and his decision to not accept cryptocurrencies as payments by Tesla. And on Tuesday (22 June), the popular crypto asset’s price dropped below $30,000, for the first time in five months, particularly on account of fears of a crackdown in China. Bitcoin is not the only digital currency that is feeling the heat these days. Another Musk favourite, Dogecoin, also reported a 60 per cent fall in price since the tech mogul joked about it, calling it a “hustle” on Saturday Night Live last month.
Despite this volatile nature of cryptocurrencies, reports claim that Canadians, particularly young individuals, have been buying in. The report issued by Finder recently revealed that 14 per cent of Canadians own some form of digital currency, with Bitcoin being the most widely held. The second-most popular cryptocurrency was Ethereum, followed by Bitcoin Cash and Ripple. Of these individuals surveyed through Google, 16 per cent were men, while only 11 per cent women said they own such digital assets. In terms of age groups, young people, between the ages of 18 and 24, accounted for 18 per cent, which is highest of this age group reported from any country.
It is no secret that this growing interest in cryptocurrencies is not limited to Canada, and this has been reaffirmed by Finbold, which projects that verified users of the popular trading platform Coinbase will escalate by 30 per cent this year, reaching over 70 million. The financial market analyst also expects that the recent fall in crypto prices to attract investors who are bargain-hunting.
“Although Bitcoin’s value has plunged with asset trading sideways, the cryptocurrency’s sentiments also put focus on exchanges like Coinbase. Most crypto opinion leaders agree that the correction of Bitcoin is forming ground for the asset’s resurgence towards the end of 2021,” it said in a report. “Historically, such a resurgence has always resulted in new investors from the retail side as the fear of missing out sets in. Thus, the situation places exchanges like Coinbase to reap.”
