The Federal Reserve has unveiled its annual “Survey of Consumer Choice,” and according to the survey results, many people still don’t have the knowledge they need to work with bitcoin.
Bitcoin Is Still Low on the Financial Ladder
The survey records data for 2019, which for the most part, suggested that more than 70 percent of participants at least knew what bitcoin is. This is a solid difference from the 68 percent the survey recorded the prior year, so that’s something to be happy about.
However, this number only reflects whether people have heard the word “bitcoin” or not and does not suggest that their knowledge of the asset is particularly strong. More than 87 percent of people selected “slightly” when asked how familiar they were with the currency and how it worked. This figure has been something of a constant over the past few years, meaning that despite the growing resources out their and the mainstream boosts that assets like bitcoin have been receiving, people’s knowledge of the currency is not improving in the slightest.
And while bitcoin remains the most popular and most familiar crypto asset to most survey takers, the remainder of the crypto industry is still relatively anonymous. For example, just over eight percent of participants said that they had heard of Ethereum, while only seven percent said they had heard of Litecoin. Just over two percent said they knew what Ripple was.
Furthermore, only 4.5 percent of respondents said they had a moderate or extreme idea of what bitcoin is and how it functions, while the only other crypto derivative that respondents appear to understand is bitcoin cash, which garnered a 40 percent figure of people who were either vaguely or somewhat familiar with it.
Perhaps the most negative point of the survey is that it’s a reminder that bitcoin and other forms of crypto have not achieved their primary goal – to be used as payment forms for goods and services. Most of the people taking part in the survey said that they were not keeping or holding crypto for the purpose of buying products or services.
Why Can’t Businesses Be More Open Minded?
Rather, they were holding crypto for speculative reasons. To this day, despite all that’s been put towards making it a cash and credit card competitor, bitcoin is still widely seen as a speculative tool – something that can be put towards getting rich quick or diversifying one’s portfolio. However, it would be unfair to blame only crypto users for this sentiment, as businesses have not done enough to become more accepting of crypto.
At the time of writing, very few enterprises accept crypto as a means of payment. Exceptions only exist through Overstock.com and similar business ventures, which means that bitcoin – despite being around for more than a decade – has not achieved the legitimate status it’s always longed for.
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