Statistics can be fascinating. Today we are bombarded with almost too much data and information. By using statistics, we can better digest that information and bring order to raw data.
Of course, with so much attention focused today on the Bitcoin and cryptocurrency craze, we are interested in finding out more about the folks investing in cryptos. Our friends at finder.com were only too happy to share their statistical research with us.
Here is what we learned:
First, cryptocurrency investment certainly has become mainstream. 7.95% of Americans have invested in a cryptocurrency or ICO (initial coin offering).
Bitcoin is the most common cryptocurrency investment… 5.15% of Americans hold Bitcoin while 1.80% are holding Ethereum. And what is the average investment amount? For Bitcoin holders, the average is $3450. Ethereum holders, however, only purchased an average of $1243.
But what do all these statistics mean?
For us, it means cryptocurrency isn’t a passing fad. Millions of Americans have invested. And because the market is so new and unregulated, it is also filled with scams.
Who are the victims of those scams? Once again, we can turn to the statistics. At one end of the scale are baby boomers such as myself. Apparently, we have not felt the bug to purchase cryptocurrencies. Just 2.24% of baby boomers claim to have invested.
On the opposite side of the spectrum are millennials. Almost 18% of them are invested in cryptocurrency.
And why haven’t more people invested?
- 40% of Americans say they don’t see the need.
- 35% believe that cryptocurrencies are too high risk
- 27% don’t understand blockchain or how value is assigned to virtual money
- 18% believe that cryptocurrencies are a scam
And a final interesting statistic? Men are almost three times more likely to purchase cryptocurrencies than women.
Our job as fraud lawyers is to best protect investors of any age or gender from becoming fraud victims. In the case of cryptocurrencies, prevention takes on far more importance.
Why? Because recovering money in cryptocurrency scams is often impossible. The currencies themselves are impossible to trace. When your money is gone, its gone.
Although Bitcoin and Ethereum are considered legit by most investors, there are new ICO offerings weekly. And many of those are scams.
Because the scammers frequently require investors pay for their investment in Bitcoin and often use fictitious addresses, recovering money from these scams is difficult.
Recovering Cryptocurrency Losses from Financial Professionals
Although we post plenty of stories about cryptocurrency fraud, we don’t profess any magic abilities to recover money from these schemes. That is why we emphasize caution and prevention.
There is an exception, however. An ever increasing number of financial professionals are getting involved in cryptocurrencies. Every investor that decides to invest in an ICO instead of stocks or bonds, represents a lost commission.
Recently we have seen an uptick in ICOs and cryptocurrency ETFs being offered by stockbrokers, investment advisers and other financial professionals. When they fail to conduct proper due diligence or make an unsuitable recommendation, both they and their employers can be held responsible for any investor losses.
If you lost $1 million in a cryptocurrency scheme or ICO and purchased your investment with the help of a financial professional, we may be able to help.
For more information, visit or cryptocurrency, ICO and Bitcoin fraud page. Want to know if you have a case? Give us a call. All inquiries are kept confidential and are offered at no fee. For more information contact attorney Brian Mahany online, at or by phone at 414-704-6731.
Special Note for ICO Insiders
We are a leading SEC Whistleblower Reward law firm. If you work or worked inside one of these businesses and have information about offering fraud or phony books and records, we definitely want to talk to you. The SEC will allow you to remain anonymous.