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Distrust In Crypto Skyrockets: Have Americans Abandoned The Future Of Finance?

Published 11/04/2023, 22:44
Updated 12/04/2023, 00:10
© Reuters.  Distrust In Crypto Skyrockets: Have Americans Abandoned The Future Of Finance?
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Benzinga - A survey conducted by the Pew Research Center has revealed that approximately two-thirds of all U.S. adults do not trust cryptocurrencies.

Among the 88% of Americans who have heard of cryptocurrencies, 75% do not believe that the current methods for investing, trading, or using cryptocurrencies are reliable and safe.

The study found that 39% of adults who are aware of cryptocurrencies have no confidence in their safety, while 36% have very little confidence.

Only a small percentage of these adults (2%) are extremely confident, and 4% are very confident in cryptocurrencies. On the other hand, 18% say they are somewhat confident.

According to the survey, certain demographic groups show greater concern about cryptocurrencies than others.

Adults aged 50 and above are more likely to be skeptical about the safety and reliability of cryptocurrencies (85%) as compared to their younger counterparts (66%).

Also Read: Unstoppable Bitcoin Reigns Supreme With Incredible Inflows, Dominating Altcoins Like Uniswap, Polkadot, Polygon

Additionally, women are more cautious about investing in, trading, or using cryptocurrencies, with 80% expressing a lack of confidence compared to 71% of men.

The survey also highlighted that 17% of U.S. adults have invested, traded, or used cryptocurrencies, a figure that remains mostly unchanged from previous surveys conducted in 2021 and 2022.

Cryptocurrency use varies based on age, gender, race, ethnicity, and income levels, with younger men, Asian, Black, and Hispanic adults, and those with upper and middle incomes more likely to use cryptocurrencies.

Interestingly, 31% of those who have ever used cryptocurrencies do not currently hold any, with lower-income households and women more likely to have abandoned their cryptocurrency investments.

The survey also showed that 45% of cryptocurrency users report that their investments have performed worse than expected, with 19% stating that these investments have negatively impacted their personal finances.

The survey showing significant distrust in cryptocurrencies emphasizes the need for increased adoption, education, and understanding.

The collapse of the cryptocurrency exchange FTX highlighted centralized risks.

DeFi meanwhile, based on smart contracts and decentralization, can improve security and transparency.

Educating the public on the benefits of cryptocurrencies and their underlying technologies, like blockchain and smart contracts, can boost confidence in digital currencies.

Addressing skepticism and misconceptions can foster a more informed user base and promote broader acceptance of cryptocurrencies in mainstream finance.

Read Next: Bankrupt Crypto Exchange FTX Bleeds $30M In Legal Fees In A Single Month

Photo: Shutterstock

© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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