Bitcoin [BTC] Predominantly Used as an Investment Vehicle: Report Reveals

Bitcoin awareness is rising in Canada as reported by the Bank of Canada which is primarily being used for investment purpose instead of a payment method. In South Africa, Bitcoin awareness takes flight while FOMO is persistent in both the countries.

Bitcoin awareness takes the front seat

Bitcoin (BTC) is now about 9 years old and the awareness about this digital asset is finally growing at a decent pace. According to the report by the Bank of Canada, it conducted the Bitcoin Omnibus Survey (BTCOS) to understand the adoption and usage of Bitcoin by Canadians and if it will affect the financial system.

According to the 2016 survey, the awareness has increased from 64 to 85 percent. As for the ownership, it has increased from 2.9 to 5 percent. The survey revealed that in 2016, Bitcoin was owned for transactional purposes as interest for a new technology arises among the people.

However, in 2017, investment was the focus and about only half of Bitcoin owners used it to buy goods or services.

A more detailed table in the report evaluates that in terms of gender, the awareness has risen the most in females from 54 to 80 while bitcoin ownership has risen in males from 4.2 to 8.1.

Governor Stephen S. Poloz has been quoted as saying in part, in the paper,

“To begin with basics, the term ‘cryptocurrency’ is a misnomer—‘crypto,’ yes, but ‘currency,’ no. For something to be considered a currency, it must act as a reliable store of value, and you should be able to spend it easily. These instruments possess neither of these characteristics, so they do not constitute ‘money.’”

Also, read: Bitcoin Fraud Got Real for the US Govt., New Task Force Might Boost Investor Confidence

Bitcoin FOMO persistent

On another backdrop, in South Africa, the report reveals that the majority i.e. 60 percent of the people doesn’t know about Bitcoin or other cryptocurrencies. Whereas, about 19 percent have heard of them in passing while only 4 percent have a deep knowledge of them.

However, the interesting point here is that despite the downward trend in the Bitcoin price, a majority of the respondents which is about 71 percent believed by investing in bitcoin, one can make huge amounts of money.

Bitcoin FOMO is certainly among the South African people as 38 percent wished they had invested. Whereas, around 43 percent sees it as a bad news while 52 percent doesn’t know how exactly it works.

The recent report gives the clear indication that Bitcoin has been seen as an investment option rather than as a payment form. Given the fact that crypto market has a high volatility that means the possibility of high gains and equally high losses, it has become a favorite among speculators. Also, Bitcoin and other cryptocurrencies still need improvements in the areas of scalability, fees involved and transaction processing time.

As the Bitcoin awareness and adoption rises, it might also lead to its other uses except for just an investment vehicle.