According to a survey by KuCoin, a worldwide cryptocurrency exchange, one in ten crypto investors in Pakistan would rather be compensated in virtual money rather than traditional currency.
A survey released on Thursday, titled “Into the cryptoverse: understanding Pakistani crypto investors 2023,” found that there is growing adoption and interest in digital assets in Pakistan, a potentially large market given that the country was ranked sixth in 2022 on the Global Crypto Adoption Index by Chainalysis.
The majority of crypto investors are motivated by hope for the future (69%), followed by the desire to accumulate wealth (44%), the want to avoid currency devaluation (49%), and the desire for convenience (49%).
The poll provides insight into the diverse uses for cryptocurrencies in Pakistan, the most popular of which is trading (46%). Next (30%) was “holding on for dear life,” or “HODLing,” the strategy of not selling cryptocurrencies despite price fluctuations.
P2P financial transactions (29%) and the acquisition of non-fungible tokens (22%), which are digital assets stored on a blockchain and can only be transferred by the owner, are two further examples of uses for cryptocurrencies.
In Pakistan, there is a huge crypto market
KuCoin’s statement on the study performed by a third party on its behalf noted that “this indicates the potential for mainstream adoption and the diverse ways in which crypto assets are being utilised in the country.” Between May 5 and May 12, 500 adult crypto investors participated in a study utilising SurveyMonkey Audience.
According to the data, 66% of crypto investors are men, with those in Generation Y (those between the ages of 26 and 39) making up the largest age group of investors (47%), followed by those in Generation Z (those between the ages of 18 and 25), with 35%.
Sixty-six percent of cryptocurrency investors make less than Rs5 million a year. In addition, 30% of fresh capital has entered the cryptocurrency market in the last quarter alone. That “a significant portion of crypto investors in Pakistan come from households with moderate to lower income levels” is a hint that “cryptos are accessible and appealing to a diverse range of income groups,” the report said.
The poll found that 40% of crypto investors in Pakistan have put in less than Rs30,000 (less than $100). “This is particularly evident among Gen Z (48pc) as it implies that a large number of investors, particularly younger generations, are starting with smaller investments, possibly due to limited financial resources or a cautious approach to cryptocurrency,” it stated.
Crypto assets, which are digital currencies verified and recorded by a decentralised system, are not recognised by the State Bank. Stakeholders have made some educated guesses about the annual trading volume of these digital assets in the country, and they put it at anywhere from $18 billion to $25 billion.
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