Americans Warm to Crypto, But Stablecoin Doubts Persist

• Deutsche Bank reports over 50% of U.S. consumers see crypto as a key asset class, with 65% believing it could replace cash.
• Only 18% expect stablecoins to thrive, while 42% predict they will fade, despite some being backed by fiat.
• Bitcoin’s future remains split with 40% believing it will thrive, and 38% thinking it could disappear.

A recent Deutsche Bank report reveals that fewer than 1% of U.S. consumers now see cryptocurrency as a fleeting “fad.” Over half of respondents view crypto as a crucial asset class, and 65% think it could eventually fully replace cash. Despite this positive outlook, questions remain over Bitcoin’s future and the stability of stablecoins, with conflicting predictions for their long-term viability.

Crypto’s Growing Acceptance, Yet Stablecoin Worries Linger

The recent DB report shows a significant decrease in skepticism compared to past years. Most of those surveyed see crypto as an important asset class and payment method, with 65% predicting it could potentially replace cash. The bank’s survey, conducted in March and July, encompassed over 3,600 consumers from the U.S., U.K., and Europe.

While this rising acceptance is encouraging, concerns about cryptocurrency stability persist. The outlook for stablecoins, a type of cryptocurrency designed to maintain a steady value, is also uncertain. Only 18% of those surveyed were positive on stablecoins, while 42% predicted their demise. Stablecoins backed by fiat currencies like the U.S. dollar or traditional commodities like gold were viewed as more likely to retain their value. In addition, over 50% of respondents foresee a potential crypto collapse within the next two years.

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Crypto Adoption Grows, but Bitcoin’s Future is Murky

Despite this, the pace of crypto adoption has stayed consistent in both the U.S. and the U.K., according to Gemini’s ‘2024 Global State of Crypto’ report, suggesting the retail market might be ready for a rebound. Analysts Marion Laboure and Sai Ravindran from Deutsche Bank believe that widespread cryptocurrency adoption will accelerate over the next two to three years, fueled by exchange-traded funds (ETFs), Federal Reserve policies, and regulatory progress.

However, the future of Bitcoin (BTC), the world’s largest cryptocurrency, is less clear. A third of consumers surveyed expect Bitcoin’s price to stay below $60,000 by the end of the year, with only 12%-14% predicting it will break $70,000. Bitcoin was trading at roughly $57,944 at press time. Looking even further out, consumer sentiment is mixed, with 40% believing BTC will flourish, while 38% expect it to disappear entirely.

While crypto acceptance is increasing, concerns persist about Bitcoin and stablecoins, with differing long-term predictions for their viability and value stability.