Cryptocurrencies are often said to be the next big thing when it comes to investing. But the burning question is, will crypto ever take over from more conventional investments such as shares and property?
Now a brand new survey has tried to find the answer. The National Association of Property Buyers asked 400 people: If you were choosing an investment, which type of investment would you prefer?
The answers revealed
One answer might not surprise you. Cash in hand proved a very popular choice – even in these days of record low interest rates. Just over a quarter (26.25%) of those surveyed said they would prefer to put their cash in the bank.
Stocks and shares, another traditional way of investing, also found favour with many investors. Around one in ten (9.75%) said they had a preference for investing in shares.
Perhaps surprisingly pension plans proved to be the least popular investment offered to respondents in the survey. Only around a twelfth of people (8.5%) opted for investing into a managed pension policy.
How does property fare as an investment in 2021?
According to the survey 9.25% of respondents would invest in a commercial property such as a rented shop. While 8.75% would prefer a pre-let residential property, an empty residential property remained twice as popular with 16.75% choosing it.
That meant that, overall, property investment remained the most popular option offered to survey participants. Well over a third of people in total opted for some kind of property investment if they found they had spare cash to hand.
Is crypto taking over?
Cryptocurrencies are of course a fairly new option. Compared with other kinds of investments which have seemingly been around for ever crypto has only been around for a decade or so.
In the NAPB survey over a fifth of participants (20.75%) agreed that they would prefer crypto when looking for a home for their money. Perhaps surprising, when cryptocurrencies are much less proven than traditional investments, can be volatile, and the future for them is uncertain to a great extent.
Commenting on the findings of the survey Jonathan Rolande of The National Association of Property Buyers (NAPB) says: “We were surprised to see just how popular crypto appears to be with investors. From almost nothing cryptocurrencies have grown to be one of the top choices.”
But he adds: “Cryptocurrency is mounting a strong challenge but property stills stacks up well as an investment. Property is something that is pretty much proven over the long term, while no one really knows what the future will hold for crypto. Property is also a real, tangible investment. Unlike cryptocurrency you can actually see what you are putting your money into, live in it or rent it out.”
And he concludes: “Will cryptocurrencies ever take over as the number one investment? Unless the price goes up they aren’t actually even an investment at all, there is no income only the potential for growth or reduction in value. Caution is needed investing hard-earned money anywhere. My advice? Get professional advice before you leap.”