With more than 100 million people globally using cryptocurrencies in 2021, the digital dollar has become a widely accepted way of saving and spending.
Even so, says a new study, a lack of knowledge of cryptos, massive fluctuations in their value and a perception that digital currencies are part of a scam have prevented more people from investing in cryptos.
Members of Gen Z, the generational cohort following the millennials and dubbed digital natives, say more government regulation and crypto law enforcement are most likely to convince them to buy cryptocurrencies, said the study by CouponFollow, a digital coupon company.
One in five people who never bought crypto has downloaded a crypto exchange app at some point, it said.
CouponFollow surveyed 1,172 respondents over the age of 18 and the respondents were limited to those in the United States who have not yet invested in cryptocurrencies.
Gen Z, millennials, Gen X, and baby boomers were all included in the survey, with sample sizes ranging from 172 to 333 for each generation.
Lack of understanding
When respondents were asked about their aversion towards cryptocurrencies, 42 percent ascribed it to their lack of understanding of digital money. Meanwhile, 39 percent were put off by the massive fluctuations in the value of some cryptocurrencies.
The third most common reason for hesitation was a concern that cryptos seemed like they were part of a scam. This sentiment was most common among baby boomers, 44 percent of whom selected it as their primary cause for avoiding cryptos.
Surprisingly, 18 percent of crypto sceptics have downloaded crypto exchange apps onto their phones but never invested in any. The biggest reason for this sort of course reversal was a lack of knowledge about how to use the app or the currencies.
Crypto investment interest seems to have taken a hit in 2022, with 61 percent of respondents saying they’re not at all likely to buy in this year.
Elephant in the room
Only 6 percent of respondents who didn’t currently own crypto said they would be very or extremely likely to do so in the near future.
The study found that interest in learning more about cryptocurrencies is not dead. Six out of 10 people were at least somewhat willing to learn more about digital money even if they weren’t ready to spend real money on it.
Raj Kapoor, founder and chairman of the India Blockchain Alliance says, “For years crypto seemed like the fleeting tech trend most people could safely ignore. However, its power — both economic and cultural — has become too big to overlook.”
“The elephant is in the room. Can we kick it out? I don’t think so, so let us learn to dance with the elephant now,” he added.
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