DeutschStudies on consumer perception of Bitcoin (BTC) are fragmented and sparse: Surveys on attitudes towards Bitcoin have so far mainly focused on consumers’ level of knowledge about this asset class, and not on Bitcoin as a long-term store of value. Many of these surveys are now outdated. So, what is the current state of Bitcoin adoption?
In addition, few studies have been conducted on the impact of market fluctuations on confidence in Bitcoin – such as the economic crisis caused by the COVID-19 pandemic. A study conducted for TheTokenist.io in April aims to close this knowledge gap: 4,852 participants in 17 countries were surveyed. Participants are between 18 and 65 years old, with just under half (over 43%) of respondents belonging to the 25 to 35 age group.
Several surveys from 2017 were used as a basis for comparison to assess how attitudes towards the crypto asset have changed over the past three years.
Study on Bitcoin Adoption: Key Results in Overview
The study results showed a significant increase in positive sentiment. Bitcoin adoption, especially as a long-term store of value, continues to advance:
- Over 45% of respondents preferred Bitcoin over stocks, real estate, and gold.
- 61% of respondents (and 78% of Millennials) are now familiar with BTC.
- 14% of Millennials have already owned the asset.
- 60% of respondents felt that Bitcoin represents a positive innovation in financial technology.
- 47% of respondents trust Bitcoin more than major banks.
- 59% of Millennials believe that most people will use Bitcoin within the next decade.
- 44% of Millennials stated that they expect to buy BTC in the next five years.
Comparison of Bitcoin with other Financial Assets
Over 45% of respondents would rather own Bitcoin than stocks, real estate, and gold, which is an increase of 13% compared to the initial value in 2017. The increase is particularly noticeable among male Millennials, who would now rather own BTC than government bonds. Such individuals are thus actively contributing to Bitcoin adoption.
While Bitcoin has gone through several volatility cycles since 2017, it remains the leading alternative asset – especially among younger investors. This growing confidence is reflected in a huge increase in public confidence in BTC as an asset class – especially since the recent COVID-19 market fluctuations, when central banks are massively printing money.
Familiarity with Bitcoin Has Increased Significantly
According to study data, familiarity with Bitcoin has increased significantly since 2017: 36% of all respondents are now somewhat familiar with BTC and 6% of respondents have already owned it. While in 2017 the majority of respondents had heard of BTC but were not familiar with it, in 2020 the majority of respondents stated that they were at least somewhat familiar with Bitcoin.
This fact is likely the result of BTC’s rapidly growing profile in the media and increased support for Bitcoin among retailers. In the last three years, BTC has been increasingly covered in the mainstream press, which remains the main source of information for people over 65. Many retailers, especially online shops, now support Bitcoin payments, which may explain the increased acceptance rates among Millennials.
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BTC as a Positive Innovation in Financial Technology
Attitudes towards BTC are becoming clearer and more positive: 60% of respondents felt that Bitcoin represents a positive innovation in financial technology, which is an increase of 27% in the last three years. This data means that knowledge about BTC has increased dramatically in the last three years. In 2017, 40% of respondents did not feel able to judge whether the technology represents a positive financial innovation.
Trust in Bitcoin and in Large Banks
In the last three years, there has been a significant loss of trust in traditional banking institutions, from which Bitcoin has strongly benefited. 47% of respondents trust Bitcoin more than large banks, which is an increase of 29% in the last three years. The increased trust in BTC is particularly noticeable among Millennials. Respondents over 65, on the other hand, seem very reluctant to trust BTC: 93% of seniors still trust large banks and this level of trust has remained essentially constant since 2017.
Three years ago, many of the largest BTC brokers were relatively new and therefore received a low level of trust. Now there seems to be an appreciation for the maturity and stability of these providers.
Hold or Sell Bitcoin?
Most respondents would hold on to Bitcoin. A significantly smaller number (9%) would resell it immediately. However, there has been a slight increase in the number of people who would spend Bitcoin. This may be an indication of the number of online shops where this is now possible.
In 2020, 44% of Millennials state that they expect to buy BTC in the next five years. Bitcoin adoption is therefore continuing to advance, especially among younger people. Nevertheless, the number of people over 65 who would make an investment in Bitcoin has remained relatively stable in recent years. Most of those over 65 (almost 80%) do not think they would invest in Bitcoin in the next 5 years.
Confidence that Bitcoin will become a widespread currency has increased in the last three years. 43% of respondents and 59% of Millennials believe that most people will use Bitcoin within the next decade. The largest increase in confidence is in the Millennial age group. Those over 65 remain skeptical that the currency will achieve general acceptance.
Bitcoin as an Intangible Asset
The number of respondents who do not see the value of Bitcoin because it is an intangible asset has fallen significantly since 2017. Over a third of Millennials now have no problem with the intangible nature of BTC. In 2017, almost half of respondents (49%) felt that BTC was an untrustworthy investment because of its intangibility. Today, only 15% of people think this – and these are mostly concentrated in older age groups.
- Bitcoin
(BTC) - Price $116,496.00
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Conclusion on the Study on Bitcoin Adoption
In the years after the 2008 market crash, Bitcoin increasingly developed as an alternative to traditional assets. In the last decade, confidence in large financial institutions has steadily declined – and the COVID-19 pandemic has only accelerated this process.
Increased knowledge about cryptocurrencies and growing confidence in Bitcoin could be observed in all age and gender groups surveyed. This effect was most pronounced among Millennials, 45% of whom would now prefer to invest in Bitcoin – rather than in stocks, real estate and gold.
This data suggests that Bitcoin has a bright future and is likely to benefit greatly from the current market crisis. As confidence in traditional investment instruments declines, many investors see Bitcoin as an alternative, long-term store of value.
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