Why do most people refuse to buy Bitcoin? Exhaustive answer from analysts
Lack of knowledge about Bitcoin is the main reason why people don’t invest in cryptocurrency. That was the conclusion reached by experts at Block in a recent study. The analysts conducted a survey among respondents in 14 countries between January and February 2022. Among those who did not buy cryptocurrency, the majority said they had little understanding of how it works. Another 32 percent reported cybersecurity concerns, with the remaining 30 percent reporting high volatility in the crypto market. Here’s a more in-depth look at the situation.
What’s stopping people from investing in crypto?
Among respondents with at least a rough understanding of cryptocurrencies, the main reasons for not buying Bitcoin were volatility and “uncertain regulatory prospects”. According to news outlet The Block, the survey was conducted before major events such as the recent fall in the price of BTC amid the collapse of the Terra project ecosystem.
That said, Block economist Felipe Chacon noted that the main reason for people’s lack of interest in cryptocurrencies is still a lack of knowledge about them. Here’s his rejoinder.
I think that amidst the big price drop, it is indeed the volatility that has become a higher concern. But then again, given that most people simply don’t know enough about the crypto market or have heard little about cryptocurrencies in general, many of them haven’t even paid attention to the Bitcoin price.
Bitcoin exchange rate
The study also found that a person’s level of knowledge about cryptocurrencies, or at least how much they think they know about them, is the strongest indicator of whether a person will buy Bitcoin in the next year. The 41 percent of respondents who said they had a level of knowledge about cryptocurrencies ranging from “satisfactory to expert” also said they would buy Bitcoin next year.
It should be noted that hackers are also acting as an obstacle to Bitcoin connectivity. And the latter changed their tactics the day before: they are now targeting meta-village users. Victims are complaining about being duped into buying plots in virtual worlds, as well as fraudulent schemes involving NFT tokens. That said, incidents involving the theft of unique tokens are already quite common – even fairly experienced crypto-investors have been involved in the past.
Cheating in meta-universes
Nurse Kasha Desrosiers shared her story, published by news outlet CryptoSlate. She invested $16,000 to buy NFT tokens assigned to virtual land in The Sandbox and SuperWorld meta-universes. Desrosiers noted that she hoped to create an educational game about human anatomy and physiology in the virtual world.
However, her dreams were not destined to come true. About three months after her purchase in the meta-universe, Desrosiers searched her browser for the Decentraland project website and clicked on the first link she came across for the relevant query. The link led to a phishing site that allowed hackers to steal tokens from her MetaMask wallet.
NFT tricks are gaining popularity
Another victim is Tracy Karlinski, an online fitness instructor. She lost her $20,000 investment in The Sandbox. According to her, the phishing site was almost identical to the portal’s login page. In their quest to join the new wave of investors, Desrosiers, Karlinski and other victims have learned a very expensive lesson about the dangers of investing in crypto without following the proper “cyber hygiene” rules.
We’ve repeated these rules many times before, and they are a must-remember for every crypto-enthusiast.
- Do not click on suspicious links. Even if you go to a supposedly genuine service site, be sure to check its web address;
- Do not download suspicious files;
- Do not connect your crypto wallet to suspicious platforms; Carefully read the terms of the transaction before signing it;
- Don’t share your personal information or passwords.
The Sandbox
Despite all this, crypto could still become an important part of the global financial system in the future. Mastercard CEO Michael Meebach hinted at this in his speech at the International Economic Forum in Davos. When the reporters were asked whether in five years time there will be an international payment system SWIFT, Miebach answered with a short “no”.
Mastercard CEO Michael Miebach
A little later, however, Mastercard representatives clarified the CEO’s position in an email.
Let’s clarify the meaning of the comment on stage, because the answer yes or no is not that simple. Michael simply confirmed what the SWIFT representatives said earlier – their operations continue to evolve. The current form of SWIFT will not be the same in the future. It is gaining more functionality and going beyond just a messaging system between banks.
Bitcoin – the future
We believe that there can be a huge number of reasons to ignore cryptocurrencies and be afraid to mess with them, and every aspiring investor will have his or her own reasons. The best way to get rid of fear is to know how blockchain works in general and each cryptocurrency in particular. So for newcomers, the only thing to recommend is to learn more about the digital asset industry.
Do your part to promote cryptocurrencies and recommend to your friends our Millionaire Cryptochat. There we discuss other interesting news as well.
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