Bank of Canada’s Bitcoin Awareness Report Shows 58% of Owners Buy For Investment Reasons
Most Canadian Bitcoin Owners Use It For Investment Purposes Only
The top four reasons for Canadians owning Bitcoin, according to the study, were: purchasing it as an investment, friends owning Bitcoin, being interested in new technologies, and using Bitcoin to buy goods and services on the internet.
This is the second year that the Bank of Canada has conducted the study. In 2016 it found that around 1 million Canadians likely owned Bitcoin, using it mainly for transaction purposes. This past year it estimates that closer to 1.8 million people owned the cryptocurrency.
Canadians’ level of awareness about the cryptocurrency also increased, from 64 percent in 2016 to 85 percent in the 2017 study. The citizens of British Columbia reported the highest level of awareness of Bitcoin, with a reported growth from 77 percent in 2016 to 93 in 2017. Prairies is ranked second in Canadian provinces in terms of BTC awareness, with Ontario in third place, according to the study.
Bitcoin is most popular among the younger demographic, with 18- to 34-year-olds being the most informed and having the highest ownership, though ownership increased almost four times over among the 45 to 54 age group. The cryptocurrency is still most popular among those with a higher education and an income of $70,000 or more.
The Bank of Canada undertook another Bitcoin Omnibus Survey during the height of the rise of the Bitcoin price in December 2017. Despite the large price increase, the adoption rate increased from 2.9 to only 5.0 percent from 2016 to 2017. Self-reported holdings of Bitcoin among users did not remarkably change during this period. However, the number one reason for holding Bitcoin did change from transactional (39 to 10 percent) to investment purposes (12 to 58 percent). The BTCOS serves as a useful monitoring tool to understand the developments of the diffusion of Bitcoin. Future research may consider other cryptocurrencies and financial technologies.