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Bitcoiners Have Low Financial Literacy: Research

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According to a new research paper published by the Bank of Canada, Bitcoin investors tend to display a low level of financial literacy, Canadian newspaper The Globe and Mail reports.

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At the same time, financially savvy Canadians are less likely to own the largest cryptocurrency despite being more aware of it compared to the general population.

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Bitcoin Whileers to have deep knowledge of blockchain and crypto, they struggle with basic financial literacy questions, thus exposing themselves to bigger financial risks.

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Expectedly, the Bank of Canada has also found that the majority of Bitcoin owners were men with high household income.

Most Bitcoiners view the cryptocurrency as an investment vehicle, with only a slim majority of the respondents considering using it primarily as a means of payment.

The findings are based on a series of surveys that were conducted over the period from 2016 to 2020. Last year, Canada became the first country to approve a Bitcoin-based exchange-traded fund. The research doesn’t take this development into account. It is also important to note that cryptocurrencies experienced a big spike in adoption in 2021.

Still, there are those Bitcoin proponents believe that crypto could be a catalyst for increasing financial literacy since it makes them explore the origins of money. Another study, which was published last June, has found a positive correlation between financial literacy and cryptocurrency investing.

Last month, the United States Treasury Department launched a new educational initiative that is meant to raise awareness about the risks associated with the novel asset class. In January, a similar program was launched by basketball star LeBron James.



Credit : u.today

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