US Investors Treat Bitcoin Like a Lottery Ticket

A recent study by the Federal Reserve Bank of Cleveland found that many people in the US are hesitant to invest in Bitcoin due to a lack of understanding about the asset class.

The research, titled 'Do You Even Crypto, Bro? Cryptocurrencies in Household Finance,' surveyed U.S. households and found that insufficient information was the main reason why people do not own crypto assets.

When respondents were shown information about Bitcoin's previous 12-month return, their desired allocation to BTC increased by around 47%, indicating that past performance is a key factor in investment decisions.

The study also found that BTC gains are often treated like lottery winnings, with investors using the money for immediate purchases rather than increasing their overall spending.