By A recent survey indicated that less than 20% of bitcoin owners trusted the federal government more than the bitcoin network.
A recent study by Curiosity at Work in partnership with the Global Blockchain Business Council, surveyed attitudes of US citizens towards bitcoin. The results showed that even though awareness of virtual currencies is at an all-time high, the number of people with enough confidence to actually invest in bitcoin remained low.
Survey Results
Despite a dramatic increase in the awareness of cryptocurrencies, from 25% in 2013 to around 60% in 2018, ownership of bitcoin continues to be low. Of the approximately 5,000 people surveyed, only around 5% actually own bitcoin, while only slightly more than 20% are considering investing in cryptocurrency.
In terms of their demographics, most bitcoin holders are young, urban, affluent, white males in their early thirties. They are independent with a low level of trust in the government, citing that a prominent reason for owning bitcoin was to avoid government regulations. People also thought to support the development of blockchain technology as a reason for owning bitcoin, as well as the fact that bitcoin was seen as a means to store value and grow investments.
Growth in Confidence Despite Volatility
While bitcoin’s adoption by businesses is growing, with companies like Microsoft and Virgin Galactic accepting the currency, many still feel that its volatility is undermining mainstream trust in the cryptocurrency, with prices fluctuating from $20,000 to $6,651. Notably, a mere 10% of respondents believed that cryptocurrencies would die out and only 38% felt that bitcoin’s price would fall during 2018. A surprising 70% of respondents, however, expected the value of bitcoin to rise.
The survey results indicate that people’s perceptions and behavior take time to evolve, especially when it comes to new and complex financial assets that are not always easy to understand. The survey results are also not altogether surprising given that risk is invariably perceived by the beholder, and that millennial males were probably best placed to understand the technology underlying cryptocurrencies, which contributed to reducing their perception of the risk in the currency.
Understanding Technology and Other Factors
Some surveys suggest that Bitcoin is indeed gaining mainstream credibility, despite turbulent crypto markets, with one survey conducted in August 2018 which showed that approximately 50% of the 2,000 respondents polled were open to trying bitcoin.
Factors likely to positively impact the mainstream acceptance of cryptocurrencies include people’s trust in the currency, which is fostered by an improved understanding of what cryptocurrency is and how it works. Not everyone necessarily understands the technology that underlies the robustness of blockchain technology, which could largely dispel the fear of the “unbacked” nature of bitcoin. This, coupled with businesses and governments acknowledgment and acceptance of cryptocurrencies as legal tender, would encourage the credibility and widespread adoption of cryptocurrency. One thing that’s for sure is that the more the cryptocurrencies and blockchain technology gets accepted, the more confidence and trust in bitcoin will grow.
Do you trust cryptocurrencies more than the federal government? Or is this viewpoint skewed by millennial opinion? Give us your thoughts in the comments below.
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