Crypto still has a way to go with capturing the hearts and minds of the general public.
Just 5.6% of the U.S. and UK population trust cryptocurrency as a safe investment, new research conducted by Traders of Crypto found. Almost two-in-three said, “no,” they don’t trust it as an investment, and the rest didn’t know what a cryptocurrency was.
That news comes despite the stellar performance of some cryptos recently. Over the last 12 months, prices for Bitcoin, the most well-known cryptocurrency, has rallied more than five-fold to $62,206 recently up from $11,509 a year ago, according to data from Coindesk.
That’s an unusual finding in the investing world, because individual investors tend to chase performance or buy more of an asset as it appreciates.
Are Crypto Fanatics Barking up the Wrong Tree?
The news on how people feel about cryptos gets worse. Not even Elon Musk, and his near-ubiquitous media presence, is helping much with getting the word out on the crypto-space. The same survey shows that more than one in four survey respondents didn’t know what Dogecoin is.
A little over a month ago, Musk gave Dogecoin prices a boost when he posted a picture of his new dog. The dog looks similar to the one shown on images of Dogecoin.
Cardano or Car-Don’t-Know?
Cardano, supposedly another popular cryptocurrency, gets an even worse showing. A mere 2.8% knew it was a type of cryptocurrency. Of the rest, some thought it was a cheese, a drink, alcohol, or wine. Overall a staggering 43% had no idea what it is.
Other parts of the survey results show a knowledge vacuum about crypto among the general public.
Investors can interpret this abject lack of knowledge in a couple of ways.
The cryptocurrency frenzy seen over the last decade can be seen as niche product of interest primarily to a relatively few individuals, sophisticated investors, and media hounds looking for interesting stories to write. In other words, crypto exiting in a bubble among the sophisticates and glitterati and may quickly fizzle when something more interesting comes along. Alternatively, the lack of knowledge by the general public about crypto could get viewed as a positive. If these assets perform well with so little general understanding by people, they will surely do far better when or if people know more. In other words, if crypto enthusiasts would pony up for an educational push on crypto then a whole new slew of investors may decide to pile into the asset class.