Despite the rise in Bitcoin’s profile over the past year, most Americans are still unsure about the word’s meaning, a new survey has revealed.
The research from UK-based training provider The Knowledge Academy asked 1,135 Americans about their knowledge of various financial terms. While terms such as ‘Savings Account’ (88 per cent), ‘Credit Union’ (76 per cent) and ‘Net Worth’ (72 per cent) came out on top, Bitcoin was much lower with 52 per cent not understanding.
Spokesman Josepth Scott said: “Every industry is riddled with jargon, none more so then in the tricky world of finance. It can therefore feel like a confusing minefield when dealing with financial terminology.
“Consequently, a lack of knowledge of financial terms will mean Americans not having the awareness and competencies to make the best possible decisions when handling a range of situations relating to savings, investments and property mangement. For many, acquiring better knowledge on financial terminology will be essential for them to achieve a higher standard and quality of living.”
Of course, a lack of knowledge about cryptocurrencies including Bitcoin does not necessarily mean that investors won’t get involved, with it recently revealed that the world’s wealthiest people are investing in crypto without a solid understanding.
“We asked about their understanding of blockchain and there is still a huge amount of misunderstanding about it,” said Knight Frank’s Nicholas Holt. “Although people are getting on the train about investing in cryptocurrencies, perhaps there is not a full understanding of what this could mean to their wealth portfolio.”
Similar research from IW Capital showed that 38 per cent of the British population lack a basic understanding of crypto, and only 5 per cent of investors have seen a profit.