The researchers estimated the influence of financial literacy on attitudes toward bitcoin, based on four categories: current ownership, intention to own in the future, no intention to own in the future, and having heard of these types of assets.
As the ecosystem of bitcoin and other cryptocurrencies grows up and evolves, in recent years various studies have emerged to attempt to identify a profile of people who acquire and use crypto currencies. For this, variables such as gender, age, socioeconomic status, level of education, and knowledge of finances, are mainly taken into account.
It is precisely around financial knowledge that the most recent report prepared by the Central Bank of Canada revolves, according to which financial education has a positive link to knowledge about crypto currencies, but a negative association to their possession.
It is worth clarifying that, this and other research, financial knowledge is “the degree of information that a person has about key financial concepts and their ability to apply that knowledge in making financial decisions.”
The results of the “Cash Alternative Survey 2019”, following the definition above, indicate that Canadians with a lower level of understanding of finance are those who would be twice as likely to invest in bitcoin.
According to such study, 93% of Canadian residents with a high level of financial information are aware of crypto currencies. Of that group, only 4% have them. In contrast, 72% of the respondents, with a low level of financial knowledge, know about these assets, but only 8% have their cryptocurrencies.
Thus, it is clear that “financial literacy” offers users a greater understanding of concepts central to economic decision-making. Consequently, it follows that people with low knowledge of finances are the ones who “take risks” and acquire cryptocurrencies. This due to their poor financial training.
This specific issue, addressed by the Think Forward Initiative was made up of the financial group ING, together with partners such as Deloitte, Dimension Data, CEPR (Center for Economic Policy Research), Dell / EMC, and Amazon Web Services.
Think Forward published earlier this year the results of study on “Financial literacy and attitudes towards crypto currencies.” In this case, it took into account a wider universe, surveying people from 15 different countries in 2018, including the United States, Australia, the United Kingdom, Asian countries, and members of the European Union.
The researchers estimated the influence of financial literacy on attitudes toward bitcoin, based on four categories: current ownership, intention to own in the future, no intention to own in the future, and having heard of these types of assets.
Think Forward stresses that people with more financial knowledge are less likely to own crypto currencies
Similar to the Bank of Canada, Think Forward stresses that people with more financial knowledge are less likely to own crypto currencies. They argue that “it is more likely that this group does not intend to possess them in the future.” To this, they add that “the more financially literate a person is, the more likely they have heard of crypto currencies, although they are less willing to acquire them.”
The study sought to know whether ordinary bitcoin users have the appropriate financial knowledge and skills “to use inherently complex, risky and volatile financial instruments.” It infers that the lack of financial information leads people to this market.
By: Jenson Nuñez.
