Are fans of Bitcoin and cryptomoney fools? The hypothesis that annoys

Who likes cryptos?

A new report published by the Bank of Canada highlights some of the behaviors of cryptomoney investors. The study uses a database from 15 countries and seeks to determine if there is a correlation between the level of financial education and the probability of owning cryptos.

The results are indisputable

The study also states that on a panel of people with lower levels of knowledge, the rate of ownership of Immediate Bitcoin review is higher. This rate is 8%, double that of the previous group. Among other things, the Central Bank indicated that awareness and ownership of virtual currencies was higher among youth, men, academics and Canadians with higher incomes.

According to the Canadian Central Bank, by 2019, 93% of Canadians with high levels of financial literacy had heard of digital assets such as Bitcoin. Moreover, the study found that only 4% of the group actually owned digital assets. Canadian analysts believe this would demonstrate that cryptomoney is less attractive to the financially literate.

These 2 observations therefore indicate that those who are not very familiar with investing are more likely to invest in cryptomoney. Nevertheless, this information is to be taken with a grain of salt, because for a financial market to work, it takes several types of investors and informed speculators.
Yield farming, an opaque system?

This investigation is accompanied by the research work carried out by Coingecko in September. The site has indeed questioned investors, specialized in yield farming. This new type of investment has emerged with DeFi and DEX.

It is characterized by very high potential gains and an equally high risk. According to the study conducted by Coingecko, 93% of the respondents claim to have earned at least 500% on their initial investment. However, 20% of them admit that they do not understand the risks associated with rewards and losses, which is quite a significant figure.

In the end, this study reveals that there are fewer seasoned investors in the cryptomoney market, notably because of age and socio-professional category. Nevertheless, the work of the Central Bank shows that the concerns of the regulators are justified. Indeed, one needs a sufficiently advanced financial education to fully understand the risks of this type of investment.