Knowledge About Cryptocurrencies Remains Low: Report

More than 40 per cent people in the US do not have much knowledge about cryptocurrencies, according to a report by blockchain company Huobi Group. The report, titled Crypto Perception Report 2022, said that more than 40 per cent of people are not at all knowledgeable or not very knowledgeable about cryptocurrencies, while 28 per cent people were somewhat knowledgeable.

The survey was conducted among 3,144 people, out of which 53 per cent were women and 47 per cent men.

“The knowledge in crypto is still low because the tech is not taught through any school or university. The only source of information is social media influencers and founders of projects. I always tell people that you cannot learn crypto without putting your skin into the game. Start small and use the ecosystem and your learning will eventually be faster,” says Kashif Raza, founder of Bitinning, an online platform focused on crypto awareness.

The Crypto Perception report further noted that Bitcoin is the most recognisable cryptocurrency for the average consumer, followed by Dogecoin, Ethereum, and Dogecoin’s rival Shiba Inu. Projects such as Solana and Cardano are less well-known among mainstream audiences, the report said.

Lack Of Confidence

More than 40 per cent of respondents said that they’re ambivalent about the future of cryptocurrencies, while nearly 25% said that they “think it’s all a scam/bubble and going to collapse”.

While 25 per cent said they didn’t have enough capital to invest in cryptocurrencies, 52 per cent said they were not knowledgeable enough to invest in digital currencies. Among other concerns that people were highlighted were unregulated market (34 per cent) and the fact that it is too risky (42 per cent). Eve the ones who said they were knowledgeable about cryptos highlighted the lack of regulation and the “risky” nature of the industry.

How Serious Are Investors About Cryptos? 

The report noted that digital currencies still constitute a relatively small part of people’s investment portfolios and only a small percentage of respondents had more than $10,000 in crypto investments. 

“I don't think at a personal level people have been putting in serious money in this; no one is investing money they cannot afford to lose in it. So, people are simply sampling or trying the product and it may not be a big systemic concern as yet, despite the fact that as a collective, a significant amount of money has been invested in these newer products,” says Manish Kumar, co-founder of two blockchain-based financial markets platforms in India, GREX and RealX.

Surprisingly, the report stated that around 40 per cent of people invest in cryptocurrency with a long-term view, while 27 per cent invest out of general interest and 18 per cent see short-term investment potential in it. Moreover, Crypto holders are optimistic about the future of the industry, citing many emerging trends as promising sectors.

“However, it’s worth noting that the top three sectors (non-fungible tokens or NFTs, metaverse and DeFi) are arguably the most talked about in the media, while others have been less widely discussed," says the report.

Further, around 50 per cent of the people get to know about cryptocurrencies through social media, while 47 per cent through the news and only 15 per cent through accountants or financial advisors.