Survey: Most Americans Still Have Zero Clue about Bitcoin and Cryptocurrency 🚨 This article is 7 years old...
Survey: Most Americans Still Have Zero Clue about Bitcoin and Cryptocurrency
3 min read
Updated: Nov. 26, 2017 at 8:58 am UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Cryptocurrencies are having a moment. The two most popular cryptocurrencies, Bitcoin and Ethereum, have exploded exponentially in value this year.
Meanwhile, ICOs have outpaced venture capital in early-round funding efforts; Goldman Sachs has expressed interest in launching a crypto-focused trading product; and the CME Group Inc. announced the first regulated Bitcoin futures product that will be featured on the open market.
Oddly, all of this activity has not changed Americans’ perceptions or understandings of cryptocurrencies. A recent poll conducted by LendEDU revealed some startling information about our collective understanding and acceptance of cryptocurrencies.
LendEDU commissioned a survey of 1,000 respondents who were asked various questions to determine their familiarity with cryptocurrency.
The results revealed wide differences in the awareness of the most popular cryptocurrency, Bitcoin. According to the survey, almost 80% of respondents had heard of Bitcoin. However, the second most popular and prominent currency, Ethereum, was recognized far less. These awareness levels reflect the actual investment trends for cryptocurrencies in 2017.
Market capitalization for cryptocurrencies has grown almost 2000% this year, and Bitcoin accounts for almost half of that growth. In many ways, this level of awareness is a positive indicator for the entire crypto-universe. If one or two prominent cryptocurrencies can lead the way, it’s possible that the entire crypto-ecosystem can follow behind.
Unfortunately, the survey also had some troubling information for cryptocurrencies. A surprisingly high 11% actually thought that Bitcoin was illegal and 48% were unsure of its legality, which is just about the worst possible mindshare problem for cryptocurrencies to have.
Moreover, as the survey reports, “It appears that there is a ‘dark-web’ stigma attached to Bitcoin.” In its early days, Bitcoin developed a whisper reputation as a digital currency that could allow nefarious actors to anonymously purchase illegal items online. Some of that stigma continues to be reinforced.
Just this week, the Pope remarked on cryptocurrency’s troubling involvement in human trafficking. In this way, the survey offers productive information; it reminds crypto-enthusiasts that cryptocurrencies require further development to ensure that they are not facilitating or enabling some of the worst activities on the planet.
How many people actually own Bitcoin?
Regarding actual interactions with Bitcoin, only 14% of those surveyed had owned a virtual currency, and only 17% indicated that they were planning on investing in a cryptocurrency in the future. This would seem to indicate that the negative connotations associated with digital currencies and Americans’ general unfamiliarity with the technical aspects of it are outweighing the tremendous growth potential for cryptocurrencies. With crypto-markets surging as they are, there is an astounding number of people sitting out on this opportunity.
What does the future hold?
The survey provides many positive indicators for the future. First, younger generations were far more likely to know about and use a digital currency. LendEdu writes that “those between the ages of 25 and 34 were the most likely to invest in Bitcoin as an asset for the future [and] to be open to using Bitcoin for purchases.”
As this generation’s technological awareness and spending habits begin to dominate the market, it’s likely to translate into more commonly-accepted expressions of cryptocurrency.
The survey also seems to indicate that cryptocurrency’s biggest problems are theoretical, not practical. In general, people are not considerably concerned about the technology’s efficacy or the currency’s viability. It’s evident that most people don’t understand cryptocurrencies, so they don’t use them.
Because its underlying technologies like the blockchain have proven to be more than viable, crypto pioneers can focus on storytelling rather than exclusively concentrating on infrastructure development.
This poll is a reminder that cryptocurrencies will ultimately fail or succeed based on wide-spread adoption and understanding. It’s not enough for Americans to know that cryptocurrencies exist. They have to know how the currencies work, what they can do, and where they fit in the financial ecosystem. Americans have to actually use cryptocurrencies in order to have sustained success or even continued expansion.
Since many Americans already know about cryptocurrency, it’s important for the various tokens to continue to share their stories and to demonstrate their use-cases. For cryptocurrency’s moment to extend into an era, Americans will need to understand cryptocurrency on a more practical and tangible level. As that story continues to proliferate, so will cryptocurrencies.
Posted In: Adoption
