Tell me what happens if you invest in bitcoin and I will tell you what your financial culture is. Gone are the days when the mere mention of bitcoin could make you seem like a very fashionable and savvy financial expert. If we are to believe this study that has just been published on the matter, the truth is quite the opposite.
A study by the Bank of Canada convinces us rather the opposite: According to this research report published by the Bank of Canada and reported by the Canadian newspaper The Globe and Mail, bitcoin investors tend to show a low level of investment. financial education.
At the same time, the study finds that Canadians who are better educated in finance are less likely to own bitcoin, despite having more information about finance and strategies to grow their capital than the rest of the population.
While Bitcoin users have a deep understanding of the blockchain and cryptocurrencies, they find it difficult to answer basic financial questions, exposing them to higher financial risks.
Unsurprisingly, the Bank of Canada also found that investing in bitcoin is something of an investment for people of a certain income level. Most bitcoin owners were men with high family incomes. This study will also have provided other insights into the relationship between the investor and bitcoin. Therefore, the majority of Bitcoin users see the cryptocurrency as a means of investment, and only a small majority of those surveyed plan to use it primarily as a means of payment.
The results are based on a series of surveys that were conducted during the period from 2016 to 2020. Therefore, the research does not take into account the realities on the ground between the end of 2020 and today. But last year, Canada became the first country to approve a bitcoin-based exchange-traded fund. The research does not take this development into account. It is also important to note that cryptocurrencies saw a huge increase in adoption in 2021. Nothing so far says that it is always the less financially literate people who continue to buy bitcoin.
In any case, the most rational initiative will be to increase financial education in the country, to allow investors to make informed decisions. It is in this logic that, last March, the United States Department of the Treasury launched a new educational initiative aimed at raising awareness about the risks associated with this new class of assets. In January, basketball star LeBron James launched a similar program. I can’t wait for Canada to do the same.
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Luc Jose Adjinacou
Far from dampening my enthusiasm, a failed investment in 2017 in some cryptocurrencies only increased my enthusiasm. Therefore, I resolved to study and understand the blockchain and its multiple uses and transmit information related to this ecosystem with my pen.