Bitcoin investors are less financially literate than others
Research from the Bank of Canada suggests that most Canadians who own bitcoins are likely to be young, men, employed, college-educated, high-income, and relatively low-financially literate.
To Report Coin Telegraph, this study showed that most bitcoin holders are those who are less financially literate than the rest of society. These results are obtained from four annual surveys between 2016 (2015) to 2020 (2009). The sample size of respondents to these surveys ranged from 1,987 to 3,893. The full version of the study, titled “Bitcoin Awareness, Ownership and Use: 2016-2020” (Bitcoin Awareness, Ownership and Use: 2016-20), was released on April 19.
One of the notable expressions in the full version of this research was this point:
Bitcoin holders knew more about the Bitcoin network than anyone else; But in the financial literacy test, they scored lower.
The financial literacy test was, in fact, just three multiple-choice questions about interest rates, inflation, and understanding of the concept of stocks / joint ventures, and three bitcoin-related questions on how to offer, digital head office, and government-sponsored networking. .
Of course, the question of whether financial literacy has really been properly assessed, given the limited number of questions, is still debated. On the other hand, it should be noted that these questions were very easy.
Also read: The Bank of Canada also introduced the national digital currency
Researchers at the Bank of Canada have emphasized that financial markets require financial literacy; Because there are many dangers that can threaten untrained people that can be overcome through more education.
Bitcoin owners
The study found that over the four years under review, the average number of bitcoin holders aged 18 to 34 has declined, with men joining the bitcoin investor jirga at least twice as often as women. Of course, the gender gap is an issue that has been widely debated in the not-so-long history of digital currencies.
In general, the side effects are consistent with the descriptive findings in question. Women, the elderly and the unemployed are less likely to own bitcoins, the report said.
The report shows that young educated men earning over $ 70,000 and having relatively low financial literacy make up the largest group of bitcoin holders in Canada.
The report states:
Young, male, employed, college-educated, high-income, and relatively low-literate bitcoins are likely.
Other people
At the other end of the spectrum, according to the report, those who scored high on the financial literacy test were probably more knowledgeable about bitcoin; But they have not invested in it.
It should be noted that the reasons for these people not to buy bitcoin were not necessarily opposition to it, but reasons such as understanding or satisfaction with current payment methods, are among the most important reasons for this. The third reason they did not invest in Bitcoin was that they could not trust a currency that the government did not support.
The study states:
We found that between 2018 (2017) and 2020 (2018), the level of awareness of Canadians about bitcoin as well as the amount of their investment remained the same. 90% of Canadians are familiar with Bitcoin, while only 5% have invested in it.
Earlier, the results of another survey called the Cash Alternative Survey were published in the Quinn Telegraph, claiming that Canadians with a lower understanding of finance are likely to invest twice as much in digital currencies.