- Block has partnered with Wakefield Research to address misconceptions surrounding Bitcoin.
- The survey included 9,500 respondents of various age groups, genders and ethnicities from around the world.
- The data reveals something revealing about the knowledge gaps in Bitcoin and what strengthens the network effect.
Block, a Bitcoin-oriented financial services company formerly known as Square, has just launched Bitcoin: Knowledge and Perceptiona report detailing a survey of 9,500 participants conducted in partnership with Wakefield Research to address common misconceptions about Bitcoin.
An immediately noticeable trend discovered in the survey addresses a simple question. Why should anyone buy bitcoin?
One of the most common misconceptions surrounding bitcoin is that people just want to invest in it to make money. Block’s report states:
“People with below-average incomes more often see the use of bitcoin as a way to send money and buy goods and services than people with above-average incomes,” as seen in the chart below.
The research also found that knowledge of cryptocurrencies determines whether or not investors are interested in buying bitcoin. Over 40% of respondents who claimed a level of “reasonable expert knowledge” in the space noted that they would likely buy bitcoin in the next year, showing a great deal of optimism.
“However, nearly a quarter of those who rate their cryptocurrency knowledge as ‘expert fair’ remain skeptical of bitcoin’s future,” the report said.
Meanwhile, the report goes on to explain that knowledge gaps are directly related to skepticism.
“Once again, we see that not knowing enough about bitcoin was by far the most common reason not to buy it, but cybersecurity, price volatility and an uncertain regulatory outlook are also commonly cited reasons,” according to the report.
However, a lack of bitcoin knowledge does not equate to a lack of awareness. Far above other cryptocurrencies, 88% of respondents have heard of bitcoin. Millennials came in at 92.5%, while baby boomers surveyed had 89.2% knowledge of bitcoin, but all age cohorts surveyed still showed a high degree of awareness. The gap in awareness of even the second most recognized cryptocurrency is… noticeable.
Knowledge gaps are more prevalent in respondents who did not know someone who owned bitcoin. One of the biggest conclusions of this research is the clearly defined network effect. Of non-bitcoin owners who know someone who owns bitcoin, 73% said they would likely buy bitcoin. However, only 37% of respondents who do not know someone who owns bitcoin said they are likely to buy bitcoin.
“Interestingly, though, the difference in optimism between high- and low-income respondents is the smallest in the Americas, and that optimism gap completely disappears if you remove those who say they know nothing about cryptocurrencies.” – Block