61% of Americans Have Little to No Understanding of How Cryptocurrencies Work: Survey

61% of Americans Have Little to No Understanding of How Cryptocurrencies Work: Survey

Also, only 10% of the respondents familiar with cryptos are using them regularly to make purchases.

More than one in ten American adults have never heard of cryptocurrencies, revealed a new survey by Harris Poll.

Nearly half of the respondents had actually heard about the names of digital currencies, according to the survey of 1,984 people taken from February 12 to 14. During this period, the price of Bitcoin was around $48,000 and $50,000.

Since then, the price of BTC has surged above $58,000 to hit yet another all-time high in its pierce discovery and is currently experiencing a pullback and is around $55k.

“From the public standpoint, it’s not a cryptocurrency; it’s a cryptic-currency,” said John Gerzema, chief executive officer of the Harris Poll.

Despite having heard of cryptos, most of them don’t really get them, with 61% of the people surveyed saying they had little or no understanding of how they work. Only 14% of those familiar with digital currencies said they understand “very well” how they work.

4% of the respondents familiar with cryptos think Bitcoin will crash to zero while double that (8%) see it going above $100,000.

The Legitimacy

Among those familiar with cryptos, about 43% expressed doubt about their legitimacy as a form of payment, while 29% think crypto will be largely forgotten in the next decade. 34% meanwhile believes it will become a standard form of payment.

Millennials, between 25 and 40 years old, continue to lead the crypto believers as 69% of them said they thought digital currencies were very or somewhat legitimate as a form of payment. This figure drops to 58% for Gen Z, between 18 and 24 years old.

According to Gerzema, millennials, who are tech-savvy and comfortable with financial products and having more investable assets, may be operating as a bridge between Gen Z and baby boomers.

In the past few weeks, we saw Tesla investing in Bitcoin and announcing that they will be accepting BTC as a form of payment. Following Tesla, others like Mastercard said they would interact with cryptos in their network, too, while many other major companies like Twitter, GM, and Uber will consider processing payments in cryptocurrencies.

Only 10% of survey respondents familiar with cryptos said they regularly make purchases with it. Given that BTC has appreciated more than 14x in value since the March sell-off, the leading digital currency works better as a long-term investment than as a form of payment.

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Author: AnTy

Is Tesla’s Elon Musk Becoming A Bitcoin Fan? Understanding BTC’s Value In Transactions

Is Tesla’s Elon Musk Becoming A Bitcoin Fan? Showing His Understanding by Promoting its Latency Reduction in Transactions

Elon Musk has been sharing pro-Bitcoin, and Dogecoin sentiment for a while. Will the Tesla CEO become the world’s biggest institutional crypto investor?

Elon Musk, the second-richest man in the world and chief executive of Tesla Motors Inc., has been flirting with the possibility of making a significant investment in Bitcoin for a while now.

Last week, the billionaire shared some of his thoughts about money, displaying that he appears to understand Bitcoin and its potential finally.

Latency Reduction Wins

Musk had engaged in a lengthy Twitter conversation that began with famous writer Ben Mezrich (who wrote ‘Bitcoin Billionaires‘ about the Gemini owned Winklevoss Twins), who claimed that he would never turn down the option to get paid in Bitcoin if he was ever offered.

The billionaire answered in the affirmative, prompting a Bitcoin-friendly Twitter user reply about the limitations of gold and fiat currency when it comes to acting as currency. Replying to the user, Musk provided his view of money, saying:

“The thing we call money is just an information system for labor allocation. What actually matters is making goods & providing services. We should look at currencies from an information theory standpoint. Whichever has least error & latency will win.”

Elon Musk CEO of Tesla, SpaceX & Dogecoin

With his comments, Musk appeared to have been pumping Bitcoin. The leading cryptocurrency has proven to be much faster than conventional systems that facilitate money and asset transfers.

As he said, latency reduction should be the objective of payment processors, especially in cross-border transactions. However, with the SWIFT global banking system proving to be both slow and expensive, Bitcoin provides a viable alternative.

Crypto Investor Musk?

The second-richest man has been making more overtures to Bitcoin over the past few months, suggesting that he might make a big-money splash and join the growing ranks of institutional investors.

Following Bitcoin breaking its previous all-time high of $20,000, Musk tweeted a meme suggesting that the leading cryptocurrency was looking rather tempting.

Picking up on the meme was Michael Saylor, the chief executive of Virginia-based business intelligence firm MicroStrategy.

Saylor counseled that Musk could convert Tesla’s entire balance sheet into Bitcoin, explaining that the move could be a “$100 billion favor” to the automaker’s shareholders. The CEO added that he could always share his playbook with Musk.

MicroStrategy made a significant splash in the crypto space last year, investing close to $1 billion in Bitcoin across several transactions. Last month, it completed a $650 million capital raise after releasing convertible senior notes to investors. As the company claimed, it would use most o the funds raised to make Bitcoin purchases.

The Virginia-based firm is now looking to counsel other companies looking to make similar moves. This week, MicroStrategy announced a conference tagged “Bitcoin for Corporations,” open to any company looking to move to the Bitcoin standard and convert its reserves to the asset.

It’s improbable that Musk will make such a move, although he could put any of his estimated $181 billion wealth into the leading cryptocurrency.

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Author: Jimmy Aki