Only the Smartest Investors Own Bitcoin: Bank of Canada
A Bank of Canada survey showed that average educated investors are least likely to buy Bitcoin.
A new report from the Bank of Canada has uncovered some intriguing data on bitcoin ownership across the country. The report found that around 13% of Canadians owned Bitcoin in 2021, but investors with average financial skills are least likely to all participate.
When and Why Do Canadians Buy BTC?
As the central bank survey showed, Bitcoin ownership figures in 2021 were more than double the 5% seen between 2018 and 2020. The increase was largely due to the increasing availability of products to buy bitcoin, along with a widespread surge in Canada savings. during the pandemic. Around 90% of Canadians are now aware of the existence of Bitcoin. This widespread wareness mirrors the results of last year’s Grayscale survey, which found that 99% of US investors are aware of
However, awareness of bitcoin has been less widespread beyond the term itself. 40% of respondents who owned bitcoin (and 66% of those who didn’t) showed a relatively low level of knowledge when verifying basic claims like “Bitcoin is backed by a government” (which is false). This number was higher than previous years when turnout was typically less than 30%.
When investors bought Bitcoin, it also influenced their motivation. Post-2019 buyers were more interested in bitcoin as a “new technology,” while long-term holders were more attracted by a lack of government trust or as a payment method.
However, it was overwhelmingly likely that both sides would see Bitcoin as an investment vehicle. Of course, long-term holders benefited more from bitcoin’s price surge in 2021 than recent holders. Perhaps unsurprisingly, most bitcoin owners weren’t whales.
The average bitcoin holder had an asset value of CDN500, while 70% had an asset value of less than CDN5,000.
Are Bitcoin Investors Smart?
Financial literacy proved to be a strong predictor of whether someone bought Bitcoin, but not as expected. In 2021, Canadians with little financial literacy had a 15.6% chance of owning Bitcoin, according to the full report. However, a similar number was found among highly educated investors at 14.7%
The discrepancy was critical among moderately educated investors, of whom only 8.8% owned Bitcoin. In previous years, low-literacy investors were the most common holders were 5.3%.