Bitcoiners are financially illiterate, according to new research

According to The Globe and Mail, Bitcoin investors have a low degree of financial literacy, according to a recent research paper published by the Bank of Canada.

Financially smart Canadians, on the other hand, are less likely to hold the largest cryptocurrency, despite being more aware of it than the general public.

While Bitcoiners have a thorough understanding of blockchain and cryptocurrency, many struggle with fundamental financial literacy questions, exposing themselves to greater financial dangers.

The Bank of Canada also discovered that the majority of Bitcoin owners were men with a high household income, as expected.

The bulk of Bitcoiners see the cryptocurrency as an investment instrument, with only a small percentage seeing it as a primary means of payment.

The conclusions are based on a series of polls that were performed between 2016 and 2020. Canada was the first jurisdiction to approve a Bitcoin-based exchange-traded fund (ETF) last year. This development is not taken into consideration in the study. It’s also worth noting that cryptocurrencies saw a significant increase in adoption in 2021.

Still, some Bitcoin supporters feel that the cryptocurrency might be a catalyst for expanding financial literacy because it encourages people to investigate the roots of money. Another study, released in June, discovered a link between financial literacy and bitcoin investment.

The US Treasury Department launched a new educational program this month aimed at raising awareness about the hazards connected with the novel asset class. LeBron James, the NBA star, launched a similar program in January.

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