61% of Americans Have Little to No Understanding of How Cryptocurrencies Work: Survey
Also, only 10% of the respondents familiar with cryptos are using them regularly to make purchases.
More than one in ten American adults have never heard of cryptocurrencies, revealed a new survey by Harris Poll.
Nearly half of the respondents had actually heard about the names of digital currencies, according to the survey of 1,984 people taken from February 12 to 14. During this period, the price of Bitcoin was around $48,000 and $50,000.
Since then, the price of BTC has surged above $58,000 to hit yet another all-time high in its pierce discovery and is currently experiencing a pullback and is around $55k.
“From the public standpoint, it’s not a cryptocurrency; it’s a cryptic-currency,” said John Gerzema, chief executive officer of the Harris Poll.
Despite having heard of cryptos, most of them don’t really get them, with 61% of the people surveyed saying they had little or no understanding of how they work. Only 14% of those familiar with digital currencies said they understand “very well” how they work.
4% of the respondents familiar with cryptos think Bitcoin will crash to zero while double that (8%) see it going above $100,000.
Among those familiar with cryptos, about 43% expressed doubt about their legitimacy as a form of payment, while 29% think crypto will be largely forgotten in the next decade. 34% meanwhile believes it will become a standard form of payment.
Millennials, between 25 and 40 years old, continue to lead the crypto believers as 69% of them said they thought digital currencies were very or somewhat legitimate as a form of payment. This figure drops to 58% for Gen Z, between 18 and 24 years old.
According to Gerzema, millennials, who are tech-savvy and comfortable with financial products and having more investable assets, may be operating as a bridge between Gen Z and baby boomers.
In the past few weeks, we saw Tesla investing in Bitcoin and announcing that they will be accepting BTC as a form of payment. Following Tesla, others like Mastercard said they would interact with cryptos in their network, too, while many other major companies like Twitter, GM, and Uber will consider processing payments in cryptocurrencies.
Only 10% of survey respondents familiar with cryptos said they regularly make purchases with it. Given that BTC has appreciated more than 14x in value since the March sell-off, the leading digital currency works better as a long-term investment than as a form of payment.