Sam Bankman-Fried, founder and CEO of FTX Cryptocurrency Derivatives Exchange, speaks at the annual meeting of the Institute of International Finance (IIF) in Washington, DC, on Thursday, Oct. 13, 2022.
Ting Shen | Bloomberg | Getty Images
After a bit of crypto-crash, scandals and financial meltdowns, Americans’ opinions on cryptocurrency have taken a turn for the worse, with the CNBC All-America Economic Survey finding a majority in favor of stronger regulations.
The survey shows 43% of people have a negative opinion of cryptocurrencies, up from 25% in March. The percentage of those with a favorable opinion fell to 8% from 19%, and those who were neutral fell by almost half to 18% from 31%.
CNBC All-America Economic Survey
This was a big money drop that was recognized as a huge hit and it had a huge party around the world with several Super Bowl commercials and celebrity endorsements. This popularity attracted the average American to crypto and the survey shows 24% of people have invested, traded or used cryptocurrency in the past, up from 16% in March.
A survey of 800 Americans nationwide was conducted Nov. 26-30 and has a margin of error of +/- 3.5%. (The March results for crypto are based on an NBC News survey.)
According to the survey, 42% of crypto investors now have some or negative views on the economy, in line with the 43% result for all adults in the survey. The biggest difference: 17% of crypto investors are “very negative” compared to 47% of non-crypto investors.
But it may still be a problem for crypto to regain its credibility as reputation seems to be important in its calculations.
“It’s a 90% retail market, which means the mom-and-pop-investor mentality is very important,” Brian Brook, CEO of Bitfury, and former head of the fund, said at the CNBC Financial Advisor Summit this week. So when you read the FTX news on the front page of the Wall Street Journal, every day for the last 30 days…that’s what happens to the new entrants, they get scared. As a result, corporate income is lower than it would otherwise be and people’s willingness to invest is reduced. “
Whether the respondent has invested in crypto or not, they may prefer to invest in a firm such as stocks or bonds. The survey found 53% of people saying that crypto should have the same rules or regulations and supervision as stocks and bonds, which includes 21% of all authorities and 16% of cryptocurrencies that require more regulations.
Crypto misconceptions come at a time when people are struggling in stocks. Only 26% say it’s a good time to invest, down two points from last quarter’s survey and the least favorable rate recorded in the survey’s 15-year history. 51% say it’s a bad time to invest, the third highest in the history of the survey, which was based on the survey’s previous results.
(You can see the full survey here.)