Knowledge Academy Survey Concludes Most Americans Are Unsure What ‘Bitcoin' Actually Means

    You may have seen studies claiming that the vast majority of Americans have heard about bitcoin. But a new study reveals another crucial point: while most Americans have heard about bitcoin, most Americans also fail to understand what ‘bitcoin’ is.

    The report comes from The Knowledge Academy, a UK-based provider of training courses. The company recently completed a survey of 1,135 Americans to measure their understanding of financial terms.

    Participants were asked to rank their familiarity with different financial terms. Bitcoin came in last place, behind terms like “amortization” and “Roth IRA”.

    The low level of confidence about bitcoin is unsurprising considering the recency of bitcoin. Americans have had savings accounts for decades, which is why it’s unsurprising to see the term ‘savings accounts’ at the top of the list with respondents reporting 88% certainty at knowing what a savings account is.

    Overall, however, Americans had a “generally poor grasp of financial terms in general,” researchers concluded by the end of the survey.

    The Results

    Researchers found the term ‘savings account’ was one with which respondents were most familiar. 88% of respondents expressed confidence in the term. 76% of respondents also expressed confidence in knowing what ‘credit union’ was, followed by ‘net worth’ at 72%. Assets and liabilities – the two key elements of net worth – garnered only 70% confidence ratings, however.

    Other terms featured in the study included ‘index fund’ (49% of respondents expressed certainty of knowing what an index fund is), ‘asset allocation’ (44%), ‘stock options (43%)’, ‘endowment’ (42%), ‘annuity’ (41%), ‘capital gains and losses’ (40%), ‘Roth IRA’ (39%), ‘mutual fund’ (39%), ‘liquidity’ (37%), ‘amortization (36%), and ‘premium’ (36%).

    Bitcoin, meanwhile, was ranked as the least-understood financial term, with only one in four Americans reporting confidence in what bitcoin means.

    Overall, researchers seemed unimpressed with the financial literacy of Americans during the study. As reported by, another similar study found that “only 16% of Americans demonstrate a high level of financial literacy” according to research from the Teachers Insurance and Annuity Association.

    Other studies have emphasized the idea that a growing number of Americans have heard about bitcoin. However, there’s a big difference between hearing about something and being able to describe it. Your grandparents may have heard about bitcoin, for example, but that doesn’t mean they know how it works, how the software runs, or any other information about bitcoin.

    A study from YouGov Omnibus in late August, for example, found that 79% of Americans are aware of at least one type of cryptocurrency, with most respondents reporting hearing about bitcoin.

    The studies showing awareness of bitcoin, for example, frequently show that most respondents don’t actually use bitcoin: they’ve only heard of it.

    Nevertheless, bitcoin is the newest financial term on the list of terms in the latest study by far. It’s unsurprising to see respondents express a lack of confidence in what bitcoin means. Optimists, meanwhile, will point to the fact that 1 in 4 respondents did report confidence in knowing what bitcoin is and how it works. That number can only go up as bitcoin continues to go mainstream.

    Get Free Email Updates!

    *Action* Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

    I will never give away, trade or sell your email address. You can unsubscribe at any time.

    Bitcoin Exchange Guide News Team
    B.E.G. Editorial Team is a gracious group of giving cryptocurrency advocates and blockchain believers who want to ensure we do our part in spreading digital currency awareness and adoption. We are a team of over forty individuals all working as a collective whole to produce around the clock daily news, reviews and insights regarding all major coin updates, token announcements and new releases. Make sure to read our editorial policies and follow us on Twitter, Join us in Telegram. Stay tuned. #bitcoin

    [Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

    [Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer


    Please enter your comment!
    Please enter your name here


    Live Bitcoin Price & Latest BTC Charts

    Today's Latest Crypto News

    Crypto Community Sentiment Still Bullish Despite BTC Trading 40% Lower Than Yearly High

    Bitcoin proponents had a lot of expectations from 2020, given the impending Block Reward Halving and the expected bull run. The year started as...

    Modern Monetary Theory (MMT) vs BTC to be the Main Event of 2020

    The biggest global emergency of the century, COVID-19 pandemic has the Treasury officials trying to decide on how much they can spend to fight...

    This Crisis Is A ‘Perfect Storm' For Bitcoin But We Could Be In For A ‘Prolonged Bear Market'

    Bitcoin is back in the green, recording the gains of 3.14% in the past 24 hours while volume on the top ten exchanges with...

    Banking Giant Santander to Bring One Pay FX Payment System to Mexico Utilizing RippleNet

    In 2020, the major Spain-based bank Santander is planning to roll out the One Pay FX program, its Ripple powered system for international payments,...

    Bitcoin Bull Market Won’t be Happening Immediately After the Halving: Bitmain CEO

    Bitcoin is currently trading above $6,300, still down over 14% on a year-to-date basis but up more than 60% from the 2020 low of...

    BitcoinExchangeGuide is a hyper-active daily crypto news portal with care in cultivating the cryptocurrency culture with community contributors who help rewrite the bold future of blockchain finance. Subscribe on Google News, see the mission, authors, editorial links policy, investment disclaimer, privacy policy. Got News? Contact us, we are human too. Note: nothing here is financial advice, do your own research thoroughly.