Cryptocurrency is Currently Undergoing a Demographic Mega-Trend Change Thanks to Bitcoin
The cryptocurrency market has seen phenomenal growth in the past few years thanks to the rise of Bitcoin and how much the mainstream media has been covering it. Many people who got rich off the cryptocurrency craze of 2017 became news icons, as well as those who were big losers during the 2017 crypto craze such as the man who lost millions of dollars in a hard drive that was thrown away.
The key to these demographic changes is the speed at which they move. Usually, to see some positive changes in demographics, you have to let time pass. Older people die, new people are born into a new paradigm, and they are more prepared for it than those previous generations ever could have been. That's not the case with cryptocurrencies though.
A survey conducted by Harris Poll and paid for by Blockchain Capital shows a startling change in the demographics of Bitcoin, if we look at another, a similar survey undertaken by Medium two years ago. The methodologies for the surveys were similar, and they can be found here.
An important thing to remember is that when the Medium survey was done, it was in the heyday of a bull market that saw Bitcoin up 800% year on year. The current survey was done in the middle of crypto winter, and one would expect that the queried users would not be as positive as the previous survey. That doesn't hold true, however, and the general sentiment has actually improved.
The key indicators that have been significantly improved are Bitcoin awareness, familiarity, perception, conviction, propensity to purchase and ownership – all of which will be examined in greater detail in this article.
The one area that is not surprising is that the mega-trend is lead by younger generations as opposed to older generations. However, some of the findings may even show a surprise rise in the older generations, particularly with regards to perception and familiarity.
The awareness among users old and new is high. There was not a single age group that was broadly unfamiliar with Bitcoin. Of course, the 18-34 group was the most aware at 90%, up from 74% two years ago. Two years ago the 35-44 age group was tied with the 65+ with an awareness of 81%. All age groups are within a single percentage point of one another right now with 45-54 and 55-64 having 88 and 89% respectively.
The percentage of people who had not heard of Bitcoin fell from 23% to just 11% in two years. A strong sign that Bitcoin is infiltrating the public consciousness much quicker than previous technologies.
The younger age groups dominated this category with 18-34 having 60% of respondents saying that they were somewhat familiar or more with Bitcoin. Compared to the 42% that made up this group before, it is quite the rise. While the 65+ group might be aware of Bitcoin, very few are familiar with it with only 20% replying that they had a basic understanding of the technology.
This leads to the next question which is perception. Now that more people are familiar with Bitcoin (43% total compared to 30% total two years ago), do they look at Bitcoin in a positive or negative light?
This is where the youngest age group dominates, having grown up in an era where digital assets are an everyday part of life. 59% are positive with regards to Bitcoin. The crash that happened 2 years ago had a negative effect on the 35-44 age group as trust was lost. 50% feel positive about Bitcoin compared to 52% in 2017. The early 2018 crash seems to affect this group the most. All other age groups show steady improvements of over 10% except for the 65+ which showed an improvement of “just” 5%. Overall perception improved by 9% across all age groups.
Conviction was measured by people who answered strongly or somewhat to the “most people will be using Bitcoin in the next 10 years” question. This showed an increase of 5% compared to 2017 where it was 28%. Over a third of the people questioned belie that Bitcoin will be used by a majority of people in the next 10 years.
Propensity To Purchase
This is perhaps the most interesting question in the whole survey. Answers claiming that people are either very or somewhat likely to buy Bitcoin in the next 5 years rose by almost half despite the current bear market. In 2017 when everyone was buying, only 19% of survey respondents had a propensity to purchase. Now, that number sits at 27% despite the losses shown over the last year.