The number of Brazilians who make investments in crypto is higher than the percentage recorded in France or the UK, according to a recently released report by the Center for Studies in Finance (FGVcef) of the Getulio Vargas Foundation’s São Paulo School of Business Administration.
According to the study” “Relevant risk for the Brazilian, French, and English investor”, 14.5% of the Brazilians interviewed said they invest in crypto assets. It is almost five times more than that observed among French investors (3%) and nine times more than in the case of British investors (1.5%).
Brazilians prefer short-term investments
It is worth noting that the survey was conducted in November 2021, when the crypto assets market scenario was different from today. At the time, FGV talked to 595 individuals, 200 in Brazil, 198 in France, and 197 in the UK.
One of the study’s conclusions is that Brazilians’ interest in crypto assets indicates a short-term focus and a search for investment options that promise high returns. “Our main goal with this study was to assess the fear of investing. In Brazil, we are very afraid of liquidity risk and the bankruptcy of the financial institution”, William Eid, coordinator of the Center for Studies in Finance at FGV EAESP and one of the authors of the report, told e-Investidor.
“At the same time, the preference for crypto comes from the lack of patience to invest the money and leave 15 years somewhere. Brazilians want their money to multiply quickly”, Eid added.
According to the report, 76% of Brazilian investors focus on the short and medium-term, while only 24% forecast their income over a longer time horizon. In England, the proportion is 64.5% in the short and medium-term and 35.5% in the long term, while in France the proportion is 45.5% and 54.5%, respectively.
Regarding the investment decision, Brazilians consider risk less (22%) than the French (26.8%) and the British (36%). Furthermore, investors in Brazil look more at past profitability (19%) from up to one month ago.
Traditional savings is still relevant for 37.5% of Brazilians
But, as Brazil is a country of contrasts, at the same time that a good part of the investors opt for crypto assets in search of profitability in the short term, the investment that remains the favorite of the population is traditional savings (37.5%), besides government bonds and fixed income in general (21%).
Other investments mentioned by the Brazilians interviewed were traditional variable income (16.1%), including stock markets, investment funds, and other risk assets. In this aspect, the French registered a percentage of only 12.6%. The British show more interest in equities (17.5%).