The Crypto Paradox: Most Americans Know About It, But Few Trust It — Survey

Crypto may have grabbed the attention of nearly 90% of US adults, but the majority remain skeptical about its reliability and safety, according to a recent survey by the Pew Research Center. 

The findings, published on Monday, reveal a growing concern amongst the general public regarding the ways to invest, trade, or use digital currencies, and raise questions about the future of this nascent industry. 

As the popularity of Bitcoin continues to surge, can it overcome the trust deficit and prove its worth as a viable investment option?

Pew Research Survey: Majority of US Adults Lack Confidence in Crypto

Crypto has captured the attention of the vast majority of US adults, but confidence in its safety and reliability remains low, according to a recent report by the Pew Research Center. The survey, published on April 10, revealed that 88% of respondents have heard of cryptocurrencies, with 75% expressing little to no confidence in its safety.

Despite concerns over the potential risks, the survey found a slight increase in the percentage of people involved in the digital currency space. Around 17% of US adults reported that they have invested in, traded, or used a cryptocurrency, up from 16% in an August 2022 survey.

The demographic most likely to engage with these asset types was men aged 18 to 29, with 41% reporting that they have invested in such assets.

However, those who have invested in Bitcoin have experienced varying levels of satisfaction. Nearly half of respondents reported that their investments have performed worse than expected, with only 15% saying they have been pleasantly surprised. Around a third of respondents said that crypto has performed at the level they expected when initially investing.

The survey, conducted last month, gathered responses from approximately 10,700 US adults.

Factors Behind Low Trust in Cryptocurrencies

Crypto has been around for over a decade now, but trust in this nascent industry remains low among the general public. The reasons for this are multifaceted and complex, but some common themes emerge.

One major factor is the perception of crypto as a mysterious and opaque world, where transactions occur behind closed doors and without oversight. The lack of transparency and regulation in the crypto space can make it difficult for people to trust that their investments are safe and secure.

Another issue is the prevalence of hacks and scams. While security measures have improved over the years, there have been numerous high-profile incidents of exchanges being hacked and users losing their funds. 

In February, JPMorgan Chase & Co. published a survey revealing that 72% of institutional traders had no intention of trading digital currencies in 2023, while 14% planned to do so within the next five years. The results of this survey bear resemblance to the recent Pew Research Center findings on crypto.

The parallel sentiments expressed in both surveys raise doubts about the widespread adoption of crypto as a mainstream investment asset, and suggest that further work needs to be done to address the concerns of investors and traders.

-Featured image from TechSpot