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Many US Crypto Users Still Trust Centralized Custodians Despite 2022 Fallout

Cryptocurrency experienced volatility and uncertainty in 2022. Despite hurdles, the sector grew and evolved. Cryptocurrencies and blockchain technologies are growing worldwide.

Cryptocurrency interest has grown despite a tumultuous year. Bitcoin, Ethereum, and other cryptocurrencies have fluctuated. Several considerations keep these digital goods popular.

Cryptocurrency adoption by mainstream institutions and investors fuels this excitement. JPMorgan and Goldman Sachs provide cryptocurrency services, and large firms have invested extensively in Bitcoin. Cryptocurrency’s rising adoption by financial institutions has legitimized it in investors’ minds.

Decentralization, security, and privacy are also becoming more widely known benefits of cryptocurrencies. Blockchain technology and cryptocurrencies can enable faster, cheaper cross-border transactions and financial services for the unbanked, which excites many people.

Lastly, the epidemic increased interest in cryptocurrencies as individuals sought other investment options during economic turmoil. Notwithstanding cryptocurrency prices’ volatility, investors’ excitement for this asset class implies that it will likely remain vital to the global financial landscape.

The US is a hot crypto market. Paxos’ latest BeInCrypto poll shows this. The study examined how the 2022 repercussions affected U.S. crypto owners. It was a turbulent year for the ecology.

Respondents lived in the US, were over 18, and had a family income over $50,000. Candidates bought cryptos within three years. 5,000 people were surveyed. Consumers remained optimistic about crypto investments. 75% of the firm’s respondents were “confident or fairly optimistic” in crypto’s future.

Despite last year’s black-swan occurrences, one-third of respondents bought their first crypto. 72% were “a little worried or not worried at all” about crypto market volatility during the last year. Most respondents indicated optimism in cryptocurrency’s future, suggesting many see value in this developing technology. Nonetheless, watching bitcoin development and adoption is crucial to understanding its long-term potential.

BeInCrypto launched a Reddit poll to gather additional user feedback. Several Redditors commented on platforms. One response read: “I’m pretty much confident. I looked beyond market volatility. Mainstream firms are adopting blockchain tech. New solutions like Polygon, Ocean, Algorand, etc., continue driving acceptance, allowing web2 enterprises to join web3.

Another user supported crypto as a payment gateway. ‘I am fairly optimistic in the future of crypto largely because I can see the adoption expanding rapidly as we now have more possibility to make purchases for products and services using crypto via payment systems,’ the Redditor said.

The report’s following section may surprise readers.

 “Despite the high-profile breakdowns and underlying inadequate risk management techniques shown in multiple crypto organizations, crypto owners still trust intermediaries to store crypto on their behalf,” 89% of respondents said.

Almost 70% of applicants stated they would buy bitcoin via their primary bank if given. This increased 12% over previous year’s poll. If integrated, banks and other financial institutions urge over 40% of respondents to invest more in crypto. Cryptocurrencies’ full potential might benefit these institutions. Allowing unrestricted digital asset custody.

Centralized custodians handle digital assets for clients. They safeguard valuables from theft, loss, and other threats. Centralized custodians help institutional investors and other big companies securely store and manage their digital assets in the bitcoin business. The bitcoin community has also critiqued centralized custodians. Third-party custodians may violate cryptocurrencies’ decentralized and trustless nature. Users must trust the custodian’s security and accept a single point of failure.

Investors and the public lost faith in centralized custodians after FTX collapsed. Nonetheless, custodians vary. Reliable caretakers have strong security measures.

 

Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Crypto is not a legal tender and is subject to market risks. Readers are advised to seek expert advice and read offer document(s) along with related important literature on the subject carefully before making any kind of investment whatsoever. Crypto market predictions are speculative and any investment made shall be at the sole cost and risk of the readers.