Largest Barrier to Bitcoin Usage Is Lack of Understanding, Study Shows
KEY POINTS
- Block funded the study that surveyed 9,500 people in 14 countries representing various socioeconomic standing, gender, and race.
- According to the survey findings, the primary reason from respondents as to why they do not buy Bitcoin is confusion and a general lack of understanding about crypto.
- A key finding was that having a baseline crypto knowledge was the most likely driver as to whether those surveyed would purchase Bitcoin within the next 12 months.
People are aware of Bitcoin, but don’t quite understand how it works.
The company Block – where Jack Dorsey is the CEO and its flagship product is CashApp – recently sponsored a global survey of 9,500 respondents to gauge their understanding and knowledge of the most valuable cryptocurrency, Bitcoin. In early 2022, Block commissioned Wakefield Research to conduct the survey which spanned 14 countries across various socioeconomic, racial, and gender demographics.
The resulting study is titled Bitcoin: Knowledge and Perceptions, and its general findings were:
- People believe Bitcoin is the solution for a more equitable economy.
- Bitcoin stands out among cryptos from an awareness and mindshare perspective.
- Education is the key to drive optimism and participation.
That last bullet is possibly the most meaningful insight because without uptake and adoption, the other two bullets almost don't matter at all.
Education drives Bitcoin understanding and use
According to the study findings, the top reason given for not buying Bitcoin was lack of understanding (51%). This was followed by cybersecurity and theft risk (32%); excessive price volatility (30%); and uncertain regulatory outlook (29%).
Conversely, the higher that respondents rate their personal crypto knowledge, the more optimistic they were about Bitcoin's future. Additionally, survey participants who don't own Bitcoin but know someone who does – are much more likely to purchase Bitcoin within the next 12 months. Even though these individuals didn't understand how Bitcoin works or how to trade it on a cryptocurrency exchange, the vast majority of surveyed individuals were aware of Bitcoin.
It's worth noting that Bitcoin has the greatest mindshare and awareness of any other cryptocurrency mentioned by the survey researchers. Specifically, awareness for Bitcoin (88%) was twice as high as its closest competing crypto, Ethereum. Broken down by age group, millennials had the highest Bitcoin recognition level of 92.5%, while 89.2% of baby boomers said they were aware of it too.
The study results are clear, if you want to drive mass adoption of crypto, you have to drive mass education of the sector first.
Our Research Expert
Tor Constantino is a corporate communications executive and business writer with an MBA. Since 2017, he has written about cryptocurrencies, blockchain, and crypto's potential to revolutionize finance. His writing has appeared in outlets including Entrepreneur, Forbes, Fortune, CEOWorld, and Yahoo!.
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