Key Insights:
- 90% of non-crypto holders in the U.S. say they don’t know enough about crypto to invest.
- Half of respondents say their lack of understanding is the biggest barrier to entering the crypto market.
- Public trust is also shaken due to past scandals like FTX, as industry leaders say education is important for unlocking crypto.
Despite Bitcoin hovering near all-time highs and U.S. lawmakers actively wading deep into crypto policy, most Americans still haven’t taken a look at the digital asset market. According to a recent survey by the National Cryptocurrency Association (NCA), a lack of understanding is now the top reason why many people haven’t invested in crypto.
Lack of Knowledge Tops the List of Concerns
The study in question, polled 2,000 non-crypto holders. At the end of the exercise, researchers found that nearly 90% of respondents feel they don’t know enough about cryptocurrency to invest.
Half of them pointed specifically to not understanding how it works as their reason.
“Curiosity is high, but confidence is low,” the NCA concluded. Many non-investors are open to learning about crypto but feel overwhelmed and unsure of whom to trust for information.
All of the above means that while interest in digital assets has grown, education has not kept pace. The survey shows that there is a massive gap between curiosity and action.
Among those who don’t currently own crypto, 49% admitted they simply don’t understand it. Others mentioned worries about being scammed, crypto having unclear backing and more.
One 66-year-old participant summed up the general sentiment: “I do not know enough about it. It just seems questionable to me how it works.”
The concept of crypto and how complex it can be technically, only add to the confusion. Many respondents said that researching digital assets felt “overwhelming,” and only 14% had even discussed crypto with friends or family.
Trust Issues Run Deep After Major Crypto Collapses
The crypto space hasn’t helped its own cause. Incidents like the FTX collapse in 2022, where billions were lost, have left a big stain on the public’s idea of crypto. The downfall of FTX’s founder, Sam Bankman-Fried, who was later arrested, strengthened fears about fraud and mismanagement in the sector.
In addition to this, Bitcoin itself for instance, fell over 70% after its previous high, before recovering last year. When all of this is put into perspective, it is easy to see why many Americans are still on the sidelines.
Who or What Backs Crypto? Many Still Don’t Know
Another interesting data point from the NCA survey revealed that 41% of respondents said they didn’t understand who or what “backs” cryptocurrencies. This means that the decentralized nature of blockchain, which is often mentioned as one of its benefits, is one of the sources of confusion among the general public.
Unlike fiat or even CBDCs which are backed by governments or gold, cryptocurrencies rely on distributed ledger systems. Newcomers find it hard to believe that this system is secure.
NCA president, Stuart Alderoty compared the current state of crypto to the early days of the internet. In 1996, many people didn’t understand why they’d ever need email or websites. The same thing is happening with crypto, which is now facing a similar challenge of clarity.
Overall, the NCA’s findings strongly indicate that the cryptocurrency industry must focus on education, if it hopes to win over the public.
