The Bank of Canada’s Report on Canadian Crypto Ownership Trends
The Bank of Canada recently released a report discussing the trends in crypto ownership among Canadians in the past year. The report revealed some interesting findings about Bitcoin and altcoin ownership, as well as the demographics of crypto investors.
Key Points:
- Bitcoin ownership in Canada decreased from 13% to 10% of the population in 2022.
- The decline in ownership can be attributed to Bitcoin’s significant price drop and increased regulatory scrutiny after FTX’s collapse.
- Altcoin ownership also decreased in 2022.
- However, ownership levels remained higher than the previous years, which were at 8% between 2018 and 2020.
- Awareness of Bitcoin has remained stable at around 90% for the past five years.
- Newer adopters of Bitcoin were more likely to be interested in it for investment purposes.
- Males, individuals aged 18-34, university-educated individuals, and those with a household income above $70,000 had the highest ownership rates.
- Those with “high financial literacy” seemed to have left the market in 2022, while those with low financial literacy continued to hold crypto.
- Individuals with incomes below $30,000 per year had more holdings in 2022 compared to 2021.
- Canadians in general still have limited knowledge of how Bitcoin works.
- 61% of non-Bitcoin owners had low crypto literacy, while 30% of owners had high literacy.
- Investors with both low and high financial literacy were more likely to buy Bitcoin than average literacy investors.
- The Bank of Canada has previously dismissed Bitcoin as an “inflation hedge,” contrary to the beliefs of some conservative leaders.
Hot Take:
The Bank of Canada’s report provides valuable insights into the trends and demographics of crypto ownership in Canada. The decline in Bitcoin ownership can be attributed to various factors such as the price drop and increased regulatory scrutiny. It is interesting to note that individuals with low financial literacy continued to hold crypto, while those with high financial literacy seemed to have exited the market. This suggests that crypto investment is not solely driven by financial knowledge. Overall, the report highlights the need for greater education and awareness about cryptocurrencies among Canadians.
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