While some people believe in the long-term potential of cryptocurrency, others are hesitant to put money in because of different concerns. A recent study conducted by Coupon Follow found out that the majority of people who haven't invested in cryptocurrency cite worries such as value volatility and restricted applications, environmental impact as well as regulatory concerns.
The survey, which included respondents aged 18 and above, was answered by 1,172 people among Gen Z, Millennials, Gen Xers and Baby Boomers. Each group was represented by samples ranging from 172 to 333 individuals. According to the report, all respondents were "no coiners," or individuals who have not yet invested in crypto.
A lack of understanding was reported as the most popular reason for buyers' hesitation across all generations, according to the research. When asked about their refusal to buy crypto, 42% of the respondents said they didn't "understand their value."
However, the report suggests that interest in learning more about crypto has not died down. Even if they were unwilling to invest money in it, the majority of respondents were at least somewhat interested in learning more about cryptocurrency. A significant percentage of respondents, 39%, were scared off by crypto volatility.
Eighteen percent of respondents said that learning more about the benefits of investing in cryptocurrency was the most effective approach to transition from skeptic to believer. Millennials said that having greater disposable income was the most likely scenario that would persuade them to invest in cryptocurrency. The research found that members of Gen Z are more interested in government regulation and law enforcement within the nascent space.
Related: Women's interest in crypto grows, but education gap persists: Study
Given the growing number of financial crimes, DeFi exploits as well as last week's dramatic collapse of Terra, this should come as no surprise.
Regulators are primarily concerned with protecting consumers, and it's evident that they're having difficulty keeping up with a fast-moving sector. Regulation exists but feels disorganized. The U.S Securities and Exchange Commission (SEC) recently revamped its crypto unit with more hires, and with the general public becoming increasingly aware of cryptocurrencies, we may expect to see more regulation in this area. Experts believe that crypto businesses should work with regulators to increase adoption.