The majority of ordinary bitcoin investors have lost money over the last seven years according to BIS
Research from the Bank of International Settlements indicates that following the failures of Terra/Luna and FTX in 2022, crypto trading surged as whales sold and regular traders purchased.
The report also concludes that, over the last seven years, the vast majority of ordinary investors in bitcoin have experienced a loss.
According to fresh statistics from the Bank for International Settlements, the great crypto crises of 2022 sparked a surge in retail crypto trading. At times of crisis, the data indicate that major investors sold their assets at the cost of smaller investors seeking to diversify their holdings.
The BIS paper says, “These trends underline the need for enhanced investor protection in the crypto area.” The BIS is a resource used by financial authorities to influence their own thinking. The bank for central banks located in Switzerland underlined past requests for global cooperation in regulating digital assets and issued a warning against growing vulnerability to the global financial system.
“Optional measures include prohibiting certain crypto activity, containing crypto, regulating the industry, or a mix of these. Containment may prevent crypto dangers from spreading to the regular economy and banking system “The study is completed. Market integrity, investor protection, and monetary stability may all be improved with “the right balance of actions.”
Seven-year research of retail investor returns on bitcoin beginning in 2015 revealed that the average retail investor lost around half of their investment by December 2022, despite the significant price increase from 2015 to 2021. The information comes from on-chain and app-level statistics for 95 countries covering the time period from August 2015 to mid-December 2022.
The analysis indicated that increases in the price of the original cryptocurrency caused increases in user numbers across platforms: from August 2015 (when the price of bitcoin was about $3,000) to November 2021 (when the price of bitcoin peaked at over $69,000), the worldwide average number of daily active users increased from around 100,000 to more than 30 million.
“In spite of this, it’s likely that the majority of people across the world who put money into cryptocurrencies have lost money. These losses may have been compounded by the tendency of bigger, more sophisticated investors to sell their coins just before to sharp price falls, while smaller investors continued to purchase “The analysis indicates.
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.