A recent survey by Gold IRA Guide reveals that only 2.7% of retirees own some bitcoin whereas 56.7% were not persuaded by bitcoin at all. Since its inception, bitcoin has gained the attention of many but despite its disruptive potential and capabilities, it has not been convincing enough for most of the American retirees. Millennials on the other side are far more aware of bitcoin and they wish to invest in it too.
About 1,000 respondents above 50 years participated in the survey and recorded their opinion on bitcoin. The largest group, comprising of 56.7% of the respondents, stated that they were aware of bitcoin but didn’t wish to invest in it. This indicates that bitcoin has not been able to demonstrate its benefits and capabilities; therefore, requiring the underlying technology to be efficiently explained to gain the trust of retirees.
It was surprisingly disclosed by the second largest group, comprising of 32.9% of total retirees, that they weren’t aware of bitcoin. Although still in a nascent phase, the blockchain technology has been around for more than a decade and bitcoin is the most commonly known use case of blockchain. However, lack of knowledge and awareness about bitcoin accounts for the small percentage of retirees owning bitcoin.
The third group that accounted for 3.4% of all retirees comprised of those who were interested in owning bitcoin but didn’t know the procedure for investing in bitcoin. Consequently, these respondents could never start trading or investing in bitcoin. The response of this group puts shows a lack of bitcoin adoption among the retirees. Actually, it’s an alarming situation for exchanges and other trading platforms as people are still clueless when it comes to investing in bitcoin.
But it’s not all doom and gloom, there is good news too though only fractionally: A small percentage of retirees claimed to own some bitcoins, with that small percentage being almost one in thirty-seven respondents owned, trusted and knew how to invest in bitcoin.
This infinitesimal percentage of retirees is a consequence of several aspects. Firstly, the risk-taking ability of an individual decreases with the course of time. Respondents belonging to the retired age bracket would definitely not prefer risks but when it comes to bitcoin, volatility remains an important concern. For instance, in 2017, bitcoin was traded for $20,000 but then in the short span of six months, it devalued to about $6,000.
In addition to this, the bitcoin bubble, as identified by many experts, also makes it unfavorable among retirees. Most of these respondents can relate the situation to the dotcom bubble of 2000 thereby reasoning for not buying it. An economic bubble is a situation where the price of an asset rises above its intrinsic value. The possibility of a bubble crash, asset’s dropping down to its original value, plays an important role when people want to invest in cryptocurrencies. This explains why the largest group of the survey lacked eagerness and interest when it comes to supporting bitcoin.
The results of the survey serve to be an eye-opener by bringing focus to some important areas which are not dealt with in a correct and necessary manner. Although crypto regulations are getting support and attention of the governments, actions should be taken in order to facilitate bitcoin adoption for the people in retirement.
There must be an effort to spread awareness of cryptocurrencies, especially bitcoin, so that people can learn what it is they are investing in. Moreover, trading platforms such as crypto exchanges should elucidate the trading mechanism to retirees in a simple and plain way, allowing participation of the people interested in bitcoin but held back due to a lack of guidance.
Furthermore, retirees should be educated about the decentralized nature of bitcoin that makes it superior to a fiat. While fiat is largely controlled by banks and financial institutions, bitcoin cannot be devalued like fiat over time. Over and above that, bitcoin is a reasonable option for retirees who want to diversify their investment.
On top of everything, bitcoin dominates fiat by providing better means of transaction. Nash Foster, CEO of Pyrofex, explained the point while talking to BlockPublisher:
“Users are adopting cryptocurrencies like Bitcoin because it’s so empowering. You can send $100 of Bitcoin to your friend across the dinner table for a few cents. The same transaction costs something like $3-$5 on the Visa network. Our business uses cryptocurrency for international payments and it really shines there. I tried sending a German software engineer a corporate check and his bank manager yelled at him for half an hour and it took more than a week for the check to clear. If you want to send a wire over the Swift network, it’s $35. But, I sent $10,000 in BTC to a developer recently and the fee was $0.09. The transaction cleared in twenty minutes and I didn’t have to go through all this rigmarole with my bank to make it happen”.
The mass adoption of bitcoin will change the society drastically. However, as actors such as exchanges and regulatory bodies try to please crypto enthusiasts, it should be remembered while planning that growth in the number of these enthusiasts holds significance in the success and adoption of cryptocurrencies.