A new report from the Bank of Canada has unearthed some intriguing facts about the state of Bitcoin ownership across the country.<\/p>\n
The report found that about 13% of Canadians owned Bitcoin in 2021 but that investors of average financial literacy are the least likely of all to buy in.<\/p>\n
As the central banks survey showed, Bitcoin ownership figures in 2021 were more than double the 5% ownership present from 2018 to 2020. The increase was largely driven by the wider availability of products for purchasing Bitcoin, alongside widespread increases in Canadian savings during the pandemic.<\/p>\n
Meanwhile, about 90% of Canadians are now aware of Bitcoins existence. This broad awareness mimics Grayscales survey results last year, which found that 99% of U.S. investors know of Bitcoin.<\/p>\n
Knowledge of Bitcoin beyond the term itself was less common, however. 40% of survey respondents who owned Bitcoin (and 66% who did not) demonstrated a relatively low level of knowledge when verifying core statements such as Bitcoin is backed by a government (which is false). This figure was higher than in previous years, in which the share was typically under 30%.<\/p>\n
The timing of when investors bought Bitcoin also had some bearing on their motivation for doing so. Post-2019 buyers were more likely to take an interest in Bitcoin as new technology, whereas long-term holders were more attracted to it due to a lack of government trust or as a payment method.<\/p>\n
That said, both parties were overwhelmingly likely to see Bitcoin as an investment vehicle. Naturally, long-term holders benefitted more strongly from the Bitcoin price run-up in 2021 than recent holders.<\/p>\n
Perhaps unsurprisingly, most Bitcoin holders were not whales. The median Bitcoin holder held $500 CDN worth of the asset, while 70% held under $5,000 CDN worth.<\/p>\n
Financial literacy proved a strong predictor of whether someone bought Bitcoin but not as one might expect.<\/p>\n
In 2021, Canadians with low financial literacy had a 15.6% chance of owning Bitcoin, according to the full report. However, a similar figure was found among highly literate investors, standing at 14.7%. The discrepancy was funda mong average literacy investors, of which only 8.8% owned Bitcoin.<\/p>\n
In previous years, low-literacy investors were the most common holders. The figures for low, medium, and high literacy levels in 2020 were 8.4%, 5.3%, and 5.3%, respectively.<\/p>\n
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\nOnly the Smartest (and Most Foolish) Investors Own Bitcoin: Bank of Canada - CryptoPotato<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"