With an array of investment products in the market, Brazilians are leaning towards cryptocurrencies as the sector moves to be integrated into the mainstream financial system.
The preference for crypto has emerged despite the market trading in the red zone for the better part of the year.
In particular, data from a survey published in November and acquired by Finbold indicates that Brazilian respondents at 33% intend to purchase cryptocurrencies such as Bitcoin within the next 12 months. Cryptocurrency ranks top, followed by real estate with a share of 26%, while stocks are in the third spot at 22%. Credit cards are also among the top investment products, in fourth place with a share of 21%, while saving accounts are fifth at 15%.
The respondents also prefer other capital investment products (15%), checking account (14%), loan (14%), mortgage (14%), insurance with an investment character (13%), construction loan, and precious metals (12%)
Elsewhere, for financial products under usage in 2022, cryptocurrencies rank fourth with a share of 26%. Digital assets trail checking account (73%), credit card (72%), and saving account (55%).
Crypto beats traditional finance products
The report notes that the respondents might be guided by the potential of the cryptocurrency sector to rebound from the current downturn.
According to the research report it said, “The survey findings also point to the potential of the cryptocurrency sector, with digital assets ranking top of traditional products such as equities. Equities and cryptocurrencies have mainly corrected in 2022 as inflation and interest rate hikes prevail. It can also be argued that with the proponents maintaining that cryptocurrencies will rally again, investors are possibly attempting to capitalize on the bear market to accumulate different assets hoping to profit.”
The preference for cryptocurrencies follows a period of economic downturn characterized by high inflation. However, the ability to invest in crypto will depend on other factors, such as regulation.