According to the research paper published by the Bank of Canada, Bitcoin owners have a very low level of financial literacy. On the other hand, financially savvy Canadians are less likely to own bitcoin (the largest cryptocurrency).
The majority of Bitcoin owners see the cryptocurrency as an investment tool, with only a small percentage considering it as a primary means of payment. The Bank of Canada also concluded that the majority of Bitcoin owners are men with a high family income.
Bitcoin owners struggle with financial literacy queries
Bitcoin owners must have a thorough understanding of blockchain and cryptocurrencies, since they frequently struggle with fundamental financial literacy queries, putting themselves in larger financial danger.
Canada was the first nation to approve a Bitcoin-based exchange-traded fund last year. A lot of polls were taken between 2016 and 2020. In 2021, cryptocurrencies acceptance hit a big spike.
Relation between financial literacy and bitcoin investing
Some Bitcoin supporters still believe that cryptocurrency might help people gain financial literacy by encouraging them to study its roots. According to another study, financial literacy and cryptocurrency investment have a beneficial relationship.
The US Treasury Department introduced a new education plan last month. Its aim is to raise awareness about the dangers involved with the new asset class.
