Bitcoin’s past performance may influence whether people decide to enter crypto.
A recent Cleveland Fed study looked at US households and tested what happens when people are given information about Bitcoin’s recent returns.
What is the interesting part?
People who were told Bitcoin had returned 14.3% over the previous 12 months were about 2.41 percentage points more likely to report owning crypto later.
Those shown a Bitcoin price chart showed a similar increase.
What caught my attention was that the effect was stronger among people who knew less about crypto.
That makes me think past performance isn’t just something investors look at after entering the market.
For some people, it may actually become the trigger to enter.
But it also raises another question:
How much of crypto adoption is driven by understanding the technology, and how much by simply seeing recent returns?
A recent Cleveland Fed study looked at US households and tested what happens when people are given information about Bitcoin’s recent returns.
What is the interesting part?
People who were told Bitcoin had returned 14.3% over the previous 12 months were about 2.41 percentage points more likely to report owning crypto later.
Those shown a Bitcoin price chart showed a similar increase.
What caught my attention was that the effect was stronger among people who knew less about crypto.
That makes me think past performance isn’t just something investors look at after entering the market.
For some people, it may actually become the trigger to enter.
But it also raises another question:
How much of crypto adoption is driven by understanding the technology, and how much by simply seeing recent returns?
