About 46 million Americans now own at least a share of Bitcoin—that equals about 17% of the adult population. And some of those people are looking to integrate the cryptocurrency into their personal financial plans—including their life insurance.
In a survey conducted by the New York Digital Investment Group (NYDIG), about 75% of the respondents said they wanted to learn more about Bitcoin annuities and Bitcoin life insurance. A majority (53%) said they didn't own digital assets, but 55% of those said they would consider adding cryptos to their portfolio.
The survey underscores the growing acceptance of cryptocurrencies, as evidenced by major investors such as Tesla's Elon Musk and Twitter's Jack Dorsey snapping up Bitcoin and Wall Street firms offering ways for top clients to participate in the market.
The survey found great interest in Bitcoin. About half the respondents said they want to receive some or all of their insurance benefits in Bitcoin, NYDIG's survey found. Nearly 90% said they had some interest in insurance or annuity products that have at least some indirect link to Bitcoin.
It's unclear how, or if, this might affect the investment decision of major insurance carriers.
Typically, insurance companies stick to the basics and spread the risk across several asset classes to generate returns for clients. The survey asked how respondents they would feel if their insurance carrier invested less than 2% of its cash in Bitcoin. Forty-three percent said such an allocation would be acceptable, while 42% said it might be okay and only 15% said they didn't like the idea.
Perhaps mass enthusiasm for Bitcoin simply a variation on the theme of celebrity endorsements. After all, many believe that if a movie star or athlete plugs a product, it must be good.There is no reason to doubt that NYDIG's survey accurately reported the results of those sampled. But investors should ask: Are the results relevant to my portfolio?
In mid-day trading Tuesday, Bitcoin changed hands at $56,248.98, down 3.29% in the last 24 hours but up 93.12% for the year. The all-time high is $64,829.14. With a market cap of $1.05 trillion and being the no. 1 choice of big corporates such as Tesla and MicroStrategy, there is no doubt that Bitcoin is still the largest cryptocurrency in the world.
