Survey: Cryptocurrencies Increasing Popular In Chile

Cryptocurrencies are increasingly popular in Chile. (Photo; Doc. Unsplash)

JAKARTA Cryptocurrencies have decreased throughout 2022 due to a number of negative events that have rocked the industry. Now the crypto market is recovering, causing the prices of a number of cryptocurrencies to rally.

At the same time, the popularity of cryptocurrencies has increased in a Latin American country, Chile. Based on the survey results of global consulting firm Bain & Companu, cryptocurrencies occupy the third position as the most popular investment asset among Chilean citizens behind investment and real estate funds.

The increasing popularity of cryptocurrencies in the country cannot be separated from the increase in national currency inflation. This affects the public to choose cryptocurrencies as an investment option. Chile is one of the five countries with the highest inflation rates in Latin America. At the same time, cryptocurrencies are increasingly popular.

The findings were obtained by Bain & Company from the results of its survey. The US-based global consulting firm conducted a survey regarding the country's most attractive investment options throughout 2022.

About 23 percent of respondents responded to crypto as the main choice for their investment last year. This puts crypto popularity at number three among other investment instruments.

Launching Bitcoin.com News, investment funds (investment funds) took first place in the survey, with 36 percent of surveyed choosing this as their first investment option. 24 percent of people surveyed answered they had invested in real estate.

Reasons for Increasingly Popular Crypto

There are a number of factors that have led to an increase in crypto popularity in Chile. One of them is the high level of return. Consumer trust did not automatically collapse due to the destruction of a number of crypto projects and companies last year.

For countries hit by inflation, cryptocurrencies are an alternative option for society. According to Marcial Rapela, Chile's branch of Bain & Company partner, crypto popularity is increasing due to its return rate.

"This figure coincides with the trend we have seen recently, where digital currencies are becoming increasingly popular given the high level of return on certain occasions," Marcial Rapela said.

However, most Chilean citizens still have traditional investment options that are not as volatile as crypto. However, crypto is still more popular as an investment instrument in the country than stocks and bonds. As much as 21 percent and 19 percent of respondents chose to invest in stocks and bonds.

In addition, increasing crypto popularity in Chile also cannot be separated from the government's role in providing regulatory clarity to crypto investors. Chile approved a crypto-related law in October 2022. The rule is believed to be able to attract more investment into cryptocurrencies in the future.