[NEWS] Investment in crypto assets to decline slightly in 2024, highlighting tax system challenges - Bitbank survey

On the 19th, Bitbank, a domestic cryptocurrency (virtual currency) exchange, released the results of a "survey on the current state of cryptocurrency investment and the market."

The survey was conducted on 1,375 general internet users. Approximately 50% of respondents answered that they "manage their assets" in financial products such as NISA and DeCo, which include cryptocurrencies.

When asked about the investment target of the respondents who answered "manage their assets," "NISA/iDeCo" was the most popular answer at 60.2%. On the other hand, 19.0% answered that "cryptocurrency" was the investment target. This is a decrease of 1.3% compared to 2023.

While investment in cryptocurrency has slightly decreased, 2.8% of respondents who answered "not managing assets" were asked "what kind of asset management they plan to start investing in from 2025." Since it was 1.0% last year, it is possible that the price increase this year has boosted interest in cryptocurrency.

Furthermore, 78.8% of people answered "I'm not thinking about investing," showing an increase in the number of people who are not even considering investing at all compared to last year's 74.5%. Considering that the number of people who answered "I don't have enough spare funds" or "I don't have any knowledge about asset management" in the survey on "Reasons for not managing assets" increased compared to last year, it is possible that a lack of surplus funds is a factor that dampens the desire to invest.

Although the percentage of respondents who chose crypto assets among those who answered that they are currently managing their assets has decreased, the investment ratio of those who answered that they are investing in crypto assets has increased compared to last year.

In response to the question, "What percentage of your total assets do you allocate to investing in crypto assets?", 60.6% answered "less than 5%" and 24.2% answered "5 to 10%", both of which increased. This indicates the entry of small investors who are incorporating crypto assets into part of their portfolios in response to the price rise.

On the other hand, when asked "Why don't you invest in crypto assets?" to those who answered "I don't manage my assets", the most common answer was "I don't have knowledge", which increased by 9.4% compared to 2023 to 43.1%, followed by "Because it is high risk", "Because I feel it is somehow dangerous", and "It seems difficult". Given these results, it appears that a lack of knowledge and negative images of crypto assets are reducing investment appetite.

In addition, when respondents who answered "I manage my assets" were asked "What do you think are the challenges facing the cryptocurrency industry?", the most common answer was "Lack of legislation related to taxation" at 24.1%. Since this was 17.3% last year, it appears that there is a growing view that the tax system for cryptocurrencies is a major challenge.

In a survey conducted by Bitbank, some respondents expressed expectations regarding the price of crypto assets in 2025.

When asked "What do you expect from crypto assets in 2025?" to respondents who answered "I manage my assets," the most common answer was "price increase" at 37.2%, followed by "future potential," "tax reform," and "popularization as a means of remittance," all of which increased compared to last year.

In addition, when asked about the highest price of Bitcoin in 2025, the most common answer was "10 million to 20 million yen," accounting for 22.0%. Although it was a close match, the next most common answer was "less than 7 million yen," which shows that there are quite a few investors who have a critical view of the price of Bitcoin.

When asked "Which crypto asset do you have the most expectations for in 2025?", "Bitcoin" was the most common answer at 43.5%, followed by Ethereum at 18.3% and XRP at 12.9%.

Reference: Announcement
Image: Quoted from the announcement, Shutterstock

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