The Amercian economy has seen a tremendous technological change in the 21st century with Google surpassing all our expectations in Deep Learning and AI, Facebook dominating the social network, and Uber revolutionizing the taxi industry with the concept of sharing economy. Many technologies like Algorithmic trading, 3D printing, robots replacing humans, virtual reality etc. have emerged in the last few years.
Advancements have become so commonplace that it comes as no surprise that even physical currency, a seemingly irreplaceable institution, has a new-age competitor quickly approaching in the rearview mirror.
Bitcoin, a worldwide, decentralized crypto-currency is growing in popularity and relevance by the day. Bitcoin remains the clear leader in the industry, but there are now hundreds of different types of virtual currencies such as Ethereum, Lite Coin, Augur Coins et cetera. Since the start of 2017, the price of Bitcoin has soared higher by an astounding 349 percent, from $968.23 to $4,336.44 at the time of this writing. Bitcoin has remained in the headlines, and more consumers have invested in the asset class.
General Bitcoin Statistics
I saw a survey by LENDEdu which revealed some interesting trends regarding the present, and future, the role of Bitcoin in the American economy. The survey attracted 1000 respondents and focused on a number of areas. It turns out that 78.6% of respondents said they had heard of bitcoin before.
Is owning it illegal? Some thought it to be yes.
You can see from the above figure that about 10.9 percent of the people think that owning it is illegal, which is certainly not true. The most surprising result of this poll was that the plurality of respondents, 47.71 percent, were unsure if Bitcoin was legal or not to own in the U.S. This will be one of the biggest challenges facing Bitcoin, and all virtual currencies if they want to challenge physical currency for consumer preference.
Age wise data
As expected, younger Americans were more likely to have heard of Bitcoin as compared to their older counterparts. 86.67 percent of respondents between the ages of 18 and 24 have heard of Bitcoin, while only 75.93 percent of respondents ages 55 and older have heard of Bitcoin. It was a consistent trend that as respondents got older, their likelihood of hearing about Bitcoin went down.
Of those between the ages of 18 and 24, 35.9% said they plan on investing in bitcoin, versus 43.5% who said no and 20.5% who weren’t sure. For the 25-34 age group, the “yes” figure grew to 40.4%, with 31.7% of respondents in that demographic saying no.
By comparison, just over 10% of those between the ages of 45 and 54 indicated an interest in investing in bitcoin. Less than 5% of those over the age of 55 expressed the same sentiment, the survey data shows.
Going off of the above analysis, the 786 American consumers that had previously heard of Bitcoin were asked about their idea of using bitcoins for the transaction purpose. Surprisingly, 39.57 percent say that they were open to using Bitcoin for transactions and purchases. In fact, the lowest percentage of consumers, 26.34 percent, were not open to using Bitcoin. Further, 34.1 percent were unsure, which probably means they need to understand a bit more about Bitcoin.
“Judging from this data, as the years go by and younger Americans develop more spending power, you can expect bitcoin to become more and more prevalent in the American economy,” the company said.