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Bitcoin in Canada: between adoption and misunderstanding

Bitcoin in Canada: between adoption and misunderstanding

Born to be alive – Bitcoin is advancing on all fronts in Canada. Some of the representatives of this constitutional monarchy already defend Bitcoin as a national currency. At the same time, the central bank has been doing its job and observing this OMNI, an unidentified monetary object, since 2016. Canada has issued a report on this old digital token from 2009. This report allows us to answer the following question: how is growing bitcoin adoption in Canada and what barriers does it face?

Bitcoin is gaining ground in Canada

The Bank of Canada has published on October 12, 2022 a report on Bitcoin adoption in the country. On reading the latter, it appears that the number of Canadians owning BTC is in increase. Indeed, 5% of the Canadian population owned BTC in 2018-2020, and in 2021it is 13% of the population owning one. This doubling of the number of bitcoin “holders” is explained by the conjunctures recent.

First of all, the pandemic world has encouraged savings, with savers diversifying their investments. The proliferation of investment means has also diversified access modes. From the simplest to the most difficult. More and more platforms bring more and more choice. The Bank of Canada notes that today, applications mobiles are much more used to access precious bitcoins. They are even a better means of access than the web, mining or again the distributors of bitcoins.

Chart: Bitcoin ownership increases in 2021 – Source: Bank of Canada

This dynamic is followed by a population very attentive to the subject. These are in fact no less than 90% citizens who know bitcoin directly or indirectly. From near or far, because even the owners of bitcoins finally know wrong topic. “Only invest in what you understand”says Warren Buffet… 40% owners of the star token actually have a low level of understanding from subject. Logically, these are 66% digitally deprived Canadians who don’t fully understand how it works.

We therefore understand that no offense to some, theAdoption goes through various systems, from the simplest to the most complicated. That all solutions contribute to the democratization of BTC, but also that the knowledge and the understanding are the keys. The associations and media which promote a facilitated approach to this subject are therefore more necessary than ever.

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But most investors remain small holders

In 2021, 13% of the Canadian population therefore owns Bitcoin. These tokens were purchased in 2020/2021 for the half owners. These holders view their bitcoins as a investment vehicle and not as a currency itself.

The median is C$500 of possession per bearer. The median is the statistical representation of the distribution. A median indicates that 50% of the sample is above and 50% is below. So 50% of the Canadian population has less than C$500 of bitcoin and the other part has more. Similarly, what might be called the 3rd quartile is C$5,000. So 70% of bitcoiners own less than C$5000 of BTC and 30% own more.

The median value of bitcoin holdings is $500
The median value of bitcoin holdings is $500 – Source: Bank of Canada

At the risk of surprising you, the more the holders are old, the more their BTC holdings are consequent. We can conclude from this information that the market saw new investors enter in 2021 and that over time, their portfolios would take the extent. Together, the holders may allow the appearance of a BTC at 1 million dollars, who knows?

Bitcoin still has hurdles to overcome

The report based on the survey omnibus 2021 also reveals the incidents holders. We can analyze them as points of suffering that brake potential new market entrants. You won’t be surprised to learn that price corrections come first. Then, the loss of the wallet, the errors of transactions, as well as the theft of funds also make the holders of BTC suffer.

A quarter of crypto holders testified to having suffered a price crash – Source: Bank of Canada

To keep bitcoin adoption on the rise, it might be worth coming up with solutions that limit, or even prevent, these misadventures. To err is human and it seems difficult to make a citizen who has a natural aversion to risk listen – as Keynes said – that the loss of a bank account code is irretrievable, and that the failure of a transaction is too. One can wonder about the possibility of mass adoption in view of these few points that say a lot.

The adoption of bitcoin in Canada is growing thanks to increasing savings and a diversification of access methods. But if half of the new holders are recent, they remain lower in value than the older holders. Ultimately, the pain points discussed in the report are those details that risk creating a ceiling for BTC adoption. In any case, if on your side, you start your research on the subject, we invite you to go here: how to buy bitcoin ?

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