A majority of 78% of American citizens express apprehension towards putting money into Bitcoin and other digital currencies. Reasons behind this hesitation are explained.
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Crypt currency flare-ups may be all the rage, but a whopping 78% of Yanks are squirmish about dumping their dough into it, as per our site's 2025 Long-Term Investment Survey. So, what's got the Uncle Sams feeling skittish about these digital coins? And what other investments boast a history of lucrative, long-haul returns? Let's dive in.
The Unease with Cryptocurrency
Our survey painted a clear picture: Americans find cryptocurrency, particularly Bitcoin, a hard sell. Here's a breakdown of the responses:
- Very comfy - 5%
- Sorta comfy - 15%
- Not too comfy - 28%
- Not comfy at all - 49%
- No idea what that is - 2%
The results from the 2025 survey were much like those from our 2022 survey. In 2022, 21% of Americans were either very or somewhat comfy, compared to 75% who were either not too comfy or not comfy at all.
Young folks seem to be more open to cryptocurrency. Around 28% of Gen Z was comfy with it, compared to 30% of millennials, 21% of Gen X, and 6% of boomers in the 2025 survey.
The Perils of Cryptocurrency Investment
Although our survey didn't delve into why Americans are wary about investing in cryptocurrency, it did offer a clue. The survey asked Americans why they didn't pick stocks as their primary investment, and the top reason was volatility. Volatility, the rollercoaster ride of an investment, makes it tricky for many traders to stay steady.
Volatility
While stocks are known for their wild ride, cryptocurrency takes things to another level.
"Cryptocurrencies lack traditional fundamentals such as cash flow, and the price movement is usually driven by sentiment," says Greg McBride, our site's top financial analyst. "As sentiment swings wildly, so too do crypto prices."
For instance, Bitcoin, which has been around for approximately 16 years, has slashed 60% or more of its value on three separate calendar years. Such unpredictability can scare investors away, especially when they've taken a loss as the crypto price swoons.
No Underlying Support
It's vital to understand that most cryptocurrencies aren't bolstered by any assets or cash flow from an underlying business, unlike traditional investments. Their price is primarily based on sentiment and the expectations of traders about whether the value will rise or fall. If demand for a coin plummets, the coin can vanish into thin air, literally losing all value.
So the only factor that keeps the price of a crypto currency soaring is by drawing more money to it - that is, by hyping it and stirring up excitement. For example, many crypto analysts issue ever-larger price targets for popular coins like Bitcoin, fueling the hype and attracting more investment dollars today.
In light of these realities, it's not surprising that Americans are hesitant about investing in cryptocurrency.
Lack of Knowledge and Regulation
Many Americans, particularly the young who are most comfy with crypto, may lack the knowledge and know-how to spot the danger of investing in an asset based on nothing and with inadequate regulation.
Although cryptocurrency has been in the scene for a number of years, many people still don't get what it is or why certain popular cryptocurrencies seem to soar (and nose-dive). While Bitcoin has experienced numerous price increases, thousands of other cryptocurrencies have gone nowhere or have been frauds and have exploded entirely, costing investors billions.
The crypto market is largely self-regulated, meaning anyone can create a cryptocurrency, and investors have limited protections. Once again, anyone can create a cryptocurrency and raise funds, and there are currently over 20,000 cryptocurrencies that are traded on exchanges, according to various estimates, though some estimates put the number of existing cryptocurrencies in the millions.
Criminal Activities
Cryptocurrency has a well-earned reputation for being used by criminals, helping them to more easily commit crimes like extortion and money laundering. The semi-anonymity of cryptocurrency and the irreversibility of transactions make it easy for criminals to use cryptocurrency to carry out their illicit business.
Alternatives to Cryptocurrency
Americans have a range of proven alternatives that boast a history of solid returns and, importantly, are backed by assets, unlike most cryptocurrencies.
Connect with an expert who can help you build your financial future### Stocks
The stock market, as measured by the S&P 500 stock index, has delivered about 10% annual returns over time, making it one of the best long-term investments. In fact, in our site's 2025 Long-Term Investment Survey, Americans picked the stock market as their top long-term investment for cash that they don't need for a decade or more.
"Cryptocurrency returns solely depend on the price rising from what you paid for it," says McBride. "But stocks represent ownership in real businesses, and cash flow can be reinvested in the company, used to make acquisitions, or returned to shareholders through dividends and stock buybacks."
Stock is a piece of a company, and the stock's performance is fueled by the performance of that business. Whether you buy shares in Amazon (AMZN), Alphabet (GOOG, GOOGL), or Apple (AAPL) - and successful companies like these - your long-term returns reflect their business success. If you need income, you can invest in dividend stocks and enjoy the cash flow.
"Studies have shown that over long investment horizons, dividends comprised approximately 40 percent of an investor's total return," says McBride. "Not only does this give you a chance to make money in a flat market, but reinvesting those dividends is a further compounder of wealth."
Real Estate
Real estate is another favorite investment, and it often places second in our site's surveys. Real estate, whether it's a primary residence or an investment property, has offered attractive returns over time, especially for those who can hold on for years and steer clear of substantial transaction costs and taxes. Real estate can provide income too, giving you cash each month.
An investment in real estate is supported by the property, unlike an investment in cryptocurrency.
Bonds
Bonds are a comparatively secure type of asset that's backed by the assets and cash flow of a business or government, unlike cryptocurrency. With bonds, you make an investment, earn interest during the life of the bond, and receive the bond's face value when it matures. Bonds are an attractive choice if you need to generate income, like retirees.
Although bonds aren't renowned for appreciating in value, their longevity as a long-term investment is proven.
Investment Funds
Investment funds - whether they're mutual funds or exchange-traded funds (ETFs) - offer attractive long-term returns. These funds own stakes in stocks and bonds, and the funds' total return reflects the performance of their investments. Some of the best ETFs buy high-growth stocks and let them compound your wealth for years; you just hold on.
"Individual investors have been well-served by regular contributions to broad-based, low-cost index funds that are held over many years with all distributions reinvested," says McBride.
Investment funds own dozens, sometimes hundreds, of investments, reducing the risk of a single investment and lowering the volatility of the fund. Investment funds are backed by their investments, which are supported by the assets and cash flow of real underlying companies.
"Use this as your blueprint," says McBride. "You get instant diversification from the first dollar you invest, low investment costs, little or no minimum investment, and regular automatic contributions and reinvestment of all distributions enable you to build your position effortlessly over time."
The Bottom Line
Most Americans remain wary of investing in cryptocurrency, and the risks involved remain staggeringly high, including the fact that it's not backed by anything at all. In contrast, Americans have a host of other investments with proven track records of solid returns.
Investing in cryptocurrency, specifically Bitcoin, is a hard sell for most Americans, as shown by the 2025 Long-Term Investment Survey results where only 5% were very comfortable, 15% somewhat comfortable, 28% not too comfortable, 49% not comfortable at all, and 2% unsure about this digital currency. Comparatively, Americans favor other investments like stocks, real estate, bonds, and investment funds for their long-term financial goals due to their historical records of solid returns.
The volatility of cryptocurrency, its lack of traditional fundamentals, and the absence of underlying assets or assets and cash flow from an underlying business make it an unpredictable investment. Furthermore, cryptocurrency's self-regulated market with insufficient protections for investors and its association with criminal activities serve as additional reasons for Americans' hesitance in investing in it. On the other hand, stocks, real estate, bonds, and investment funds are backed by assets and offer a better chance for long-term wealth accumulation.
