The word cryptocurrency used to be unfamiliar to the majority of people before bitcoin made its debut. Today, even after the crypto boom, a high percentage of American adults are still uncertain about the cryptocurrency market, as found by a recent CLOVR study. The study surveyed 1,000 people from the US between the age of 18-80 through the Amazon’s Mechanical Turk platform.
When asked questions about their general knowledge of crypto, 76% of the participants stated that they know what a cryptocurrency is but only 62% of them would feel comfortable explaining what a cryptocurrency is to someone else. This shows that they may have a basic understanding of what a crypto is, but they do not understand it fully in order to be able to explain it to someone else.
Moreover, the top feelings associated with cryptocurrency are first, uncertainty and secondly, confusion as expressed by a large number of participants. On the other hand, 31.5% listed excitement as their top feeling. This shows that positive feelings are tied to cryptos even if they are not on the top of the list.
Nevertheless, as found from the CLOVR survey, millennials who make more than $75,000 are most likely to invest in a cryptocurrency since they wish to benefit from their volatility and steep increase in price. 66% of the participants declared that they have not invested in a cryptocurrency. However, it seems that 43% of men have invested in crypto whereas only 23% of women have. This either means that men like to be associated with the risk and excitement involved in owning cryptocurrencies or that simply they are more familiar with cryptos in general.
What is more, 82% of the baby boomers have not invested in a crypto whereas 41% of the millennials have. This is possible due to the fact that cryptocurrencies, in general, are relatively new and since most baby boomers are not so familiar or are simply not that interested in the latest technology they choose not to be part of this new trend or simply they do not know anything about it.
Millennials, on the other hand, are quite interested in the blockchain, the technology behind cryptos. As a result, a large percentage of them showed interest in owning a cryptocurrency either now or in the near future.
Top reasons for investing in a cryptocurrency besides the possibility of a huge return on investment which is the most obvious reason comes the belief that cryptos are the currency of the future. This alone shows that people started to shift their mentality on what a currency needs to be and how it should serve its people. Nevertheless, volatility and the risk associated with cryptos make the top reasons for not investing in a cryptocurrency. 58.1% of the CLOVR study participants claimed specifically that it is too risky to invest in a crypto. Additionally, 48% stated that they do not know enough about it even if they know people who are already investing in cryptos.