Nearly 40% of Chinese Would Still Invest in Cryptocurrencies, Survey Finds

A recently conducted survey has found that despite the prolonged bear market that saw most cryptocurrencies lose between 80% and 90% of their value, nearly 40% of respondents would still invest in cryptocurrencies if they had spare funds.

According to 8BTC, the survey was conducted by local news outlet PANews, and it found that 82.8% of the polled individuals would consider buying crypto a “trendy investment,” while 40% claim they would like to invest.

While the report doesn’t detail how the survey was conducted, it claims it asked 4,980 Chinese individuals about cryptocurrencies between November 26 and December 10 of this year, and managed to get 4,200 valid questionnaires.

Most Have Heard Of Crypto

Notably, the local news outlet claims it found that 98.22% of respondents had heard of at least one concept related to cryptocurrencies. About 50% claimed to have heard of cryptocurrency, digital currency, or bitcoin, while 42.3% claimed to have heard about blockchain technology.

The concept of a blockchain-based token wasn’t as popular, as only 22.2% heard about it. Among those who claimed to have heard about blockchain technology, 20% had “some knowledge” about it, but most knew blockchain tech at “a relatively surface level.”

Millennials, the report adds, are more familiar with cryptos. As CryptoGlobe covered other surveys have found millennials are into cryptocurrencies, as consultant Capgemini’s World Wealth Report 2018 found more than 25% of High Net Worth Individuals (HNWIs) surveyed “place importance” on getting information about the ecosystem.

The report notably points out that those who responded to the survey were more familiar with cryptocurrency in general than with bitcoin. This, it claims, as cryptocurrencies are, in general, seen as an investment product.

Out of the 14% of respondents who have invested in cryptocurrencies, about 20% only heard about bitcoin, while the remaining 80% heard about top altcoins like Ethereum. Per the survey, Key Opinion Leaders (KOL) appear to play an important role in familiarizing people with cryptocurrencies, as nearly 38% of respondents learned about crypto from online celebrities and the community in general.

About 26%, it adds, found out about crypto from friends and relatives, while mainstream media reports got to 20% of the survey’s respondents.

Investing In Crypto

Out of the who 598 reportedly bought cryptocurrencies, and 60.5% of them were aged 19-28 and invested between $1,450 and $14,500. Most entered the market after last year’s bull run. When asked where they would invest if they had some available funds, 39.6% claimed they would go with crypto.

The most popular answer here were stocks in popular companies and real estate. Interestingly, earlier this year a survey conducted by Get Living, a real estate developer in the United Kingdom, found that 21% of UK millennials would prefer investing in BTC over real estate.

In PANews’ survey, most revealed they would invest in crypto after being influenced by get-rich-quick stories, while nearly 59% said they weren’t investing because of “the complicated procedures when they encounter in wallet use and in crypto exchanges.”

Notably, 63.43% of respondents didn’t see a need to use cryptocurrencies as a payment method, as mobile payment solutions like Alipay and WeChat Pay are “convenient in the country.”

Important Tezos Milestone: First Round of Voting on Protocol Amendments Completed

Tezos, a “self-amending” blockchain network, has reportedly completed its first round of voting, which was being conducted in order to determine whether the cryptocurrency’s community is in favor of initiating a set of upgrades to Tezos’ blockchain.

After raising over $230 million through an initial coin offering (ICO) in 2017, Tezos’ developers released the platform’s mainnet in September 2018. Currently, the market capitalization of Tezos’ native tokens (XTZ) stands at nearly $430 million according to CryptoCompare data.

In the past day, the price of Tezos’ XTZ cryptocurrency has surged by over 20% - presumably due to the announcement regarding the platform’s first successful round of voting. However, Tezos’ current market share is still well below the $1 billion mark it had reached last year.

Tezos’ proposed protocol amendments, known as “Athens A” and “Athens B,” consist of a set of system-wide updates. Both the upgrades are hard forks (backwards incompatible) that will now be automatically activated - as Tezos’ creators claim that they’ve developed the blockchain network to function in a “self-governing” manner.

Tezos' Bakers Perform Similar Jobs As Miners On Proof-of-Work Networks

Tezos’ Athens A proposal received 25,855 community votes from the network’s “bakers” - who are essentially the equivalent of miners on proof-of-work (PoW)-based crypto platforms. The majority, or 18,181 votes, were in favor activating the updates associated with Athens A.

Notably, not all of Tezos network’s eligible bakers voted on the Athens A proposal as more than half of them chose not to cast their vote. The Tezos Foundation, which is a non-profit organization that has managed the funding and ongoing development of Tezos (and currently controls around one-third of Tezos’ “baking power”), stated in an official blog post

The Tezos Foundation decided to remain neutral by not upvoting any proposals. As noted, this contributes to the required quorum and further elevates the voices of other members of the Tezos community in this historic first vote.

Increasing Gas Limit In Order To Improve Transaction Throughput

The main changes that will be initiated with Athens A include increasing the current computation (or gas) limits for every new block generated on the Tezos network. This change, Tezos’ developers explained, will help in significantly increasing the decentralized platform’s current transaction throughput. Awa Sun Yin, the founder of Cryptium Labs and one of the most active bakers on Tezos’ platform, wrote in a blog post (published in late January 2019):

If the gas limit is increased, it would enable more computation in blocks and operations, meaning that not only the maximum [number] of transactions per block could increase, but also the complexity of the transactions.

Roll sizes on Tezos’ network, which are “aggregated” XTZ tokens that bakers hold in order to be eligible for being randomly chosen to validate blocks on the Tezos blockchain, will be reduced from the current 10,000 XTZ to 8,000 XTZ.

According to Jacob Arluck, the manager of a business entity affiliated with Tezos’ development, the proposed change would “incrementally” reduce the barrier to entry for users who are interested in becoming a baker on the Tezos platform.

Exploration Phase To Start Soon

The next phase of Tezos’ protocol amendment process requires that users participate in a three-week “exploration vote period.” During the exploration period, bakers will be voting on whether to move the Athens A proposal to a testing phase. If 80% or more of the platform’s voters decided to initiate the changes associated with Athens A, then a temporary Tezos-based blockchain network will be launched.

The temporary chain will remain active for a two-day, or 48 hour period, - during which the secondary blockchain will serve as a testnet for activating the codebase modifications associated with Athens A. Tezos’ development team will reportedly monitor how the changes introduced with Athens A perform in a testing environment - before deciding on releasing them to mainnet.

Andrew Paulicek, the founder of Tezos’ baking service HappyTezos, told Coindesk:

We are indeed working on adding zero-knowledge cryptography via a future protocol upgrade proposal later this year. The exact shape that this integration will take is not yet decided.