Cryptocurrencies rose in popularity in Chile, according to a survey from global consulting firm Bain & Company. The survey found that crypto is ranked as the third most popular investment asset among Chileans, only behind investment funds, which were the most popular investment option, and real estate, which ranked second.
Popularity of Crypto Rises in Chile in 2022
Countries in Latam that have been affected by high devaluation and inflation rates are starting to turn to crypto as an investment option. In Chile, which is among the five countries with the worst inflation in the zone, crypto has risen to be among the most popular investment choices among all options available in the market.
The findings are from a survey by Bain & Company, a global consulting firm headquartered in Boston, which inquired about the most interesting investment options in the country during 2022. 23% of the polled answered that crypto was the go-to choice for their investments in 2022, putting it in third place among all options.
Investment funds took first place in the survey, with 36% of the polled having chosen this as their first investment option. 24% of the people polled answered having invested in real estate.
Why Crypto Is Becoming More Popular
The reasons behind the results have to do with how investors see crypto and its possible returns, even when 2022 was not a good year for the industry, having faced the demise of Terra and the bankruptcy of FTX, two particularly impactful events. About this perception, Marcial Rapela, partner at Bain Chile, stated:
This figure coincides with the trend that we have seen in recent times, where digital currencies have become increasingly popular given their high levels of return on certain occasions.
However, most still choose traditional investment options due to their limited volatility and associated risk. Still, crypto was considerably more popular than other established options like stocks and bonds, which got 21% and 19% of preference, respectively.
Chile has been making moves to give cryptocurrency investors regulatory clarity. The country approved a fintech law in October, which analysts believe is going to attract more investments to the cryptocurrency industry in the future. Also, after years of fighting private banks, cryptocurrency exchanges are now able to open bank accounts in the country. Buda, a national exchange, was the first to do so, opening the doors for others.
What do you think about the growth of crypto in Chile as an investment tool? Tell us in the comments section below.
Sergio is a cryptocurrency journalist based in Venezuela. He describes himself as late to the game, entering the cryptosphere when the price rise happened during December 2017. Having a computer engineering background, living in Venezuela, and being impacted by the cryptocurrency boom at a social level, he offers a different point of view about crypto success and how it helps the unbanked and underserved.
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