Bank of Canada study: Bitcoin investors are less financially literate than others



Research by the Bank of Canada shows that young, male, college-educated, high-income and relatively low-literate Canadians are more likely to have bitcoin.

According to the Quin Telegraph, the study found that bitcoin holders are often less financially literate than the rest of society. These results were obtained from four annual studies between 2016 (2015) and 2020 (2009). The sample size of the respondents in these surveys ranged from 1987 to 3893. The full version of the survey, entitled Bitcoin Awareness, Ownership and Use: 2016-2020, was released on 19 April. .
One of the remarkable expressions in the full version of this study was this point:

Bitcoin owners had more information about the bitcoin network than others, but scored lower on the financial literacy test.

The financial literacy test was actually just three questions with multiple interest rate options, inflation and an understanding of the equity / co-investment concept, and three bitcoin-related questions such as how it was offered, the digital bureau, and the government-sponsored network.

Of course, the question of whether financial literacy has indeed been properly assessed, given the limited number of issues, is still under discussion. On the other hand, it should be noted that these issues were very easy.

Read also: The Bank of Canada also introduced the national digital currency

Researchers from the Bank of Canada argue that working in financial markets requires financial literacy, as there are many risks for the unprepared that can be overcome through additional training.

Bitcoin owners

The study found that over the four years under review, the average number of bitcoin holders aged 18 to 34 fell, with men joining the bitcoin investor market at least twice as often as women. Of course, the gender gap is a topic that has been widely discussed in the not-so-long history of digital currencies.
Overall, the side effects are in line with the descriptive findings discussed. According to the report, the likelihood of owning bitcoin decreases with women, old age and unemployment.
The report shows that young educated men with more than $ 70,000 and relatively low financial literacy make up the largest group of bitcoin holders in Canada.
The report states:

Young, men, employed, college educated, high-income and relatively low-literate bitcoins are likely.

Other people

At the other end of the spectrum, according to the report, those who scored high on the financial literacy test were probably more aware of bitcoin but did not invest in it.
It should be noted that the reasons why these people do not buy bitcoins are not necessarily opposed to this, but reasons such as lack of understanding or satisfaction with current payment methods are among the most important reasons for this. The third reason these people do not invest in bitcoin is that they cannot trust a currency that is not supported by the government.
The study states:

We found that between 2018 (2017) and 2020 (2017), the level of awareness of Canadians about bitcoin, as well as the amount of their investments remain the same. 90% of Canadians are familiar with bitcoin, while only 5% have invested in it.

Earlier, the Quinn Telegraph published the results of another study called the Cash Alternative Survey, which claims that Canadians with a lower understanding of finance are likely to invest twice as much in digital currencies.

The publication of a study by the Bank of Canada: The financial literacy of bitcoin investors is lower than others appeared for the first time in Digital Currency.

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