Survey: Most People Have Heard of Cryptocurrency, But Don't Have a Clue What It Is

Published on 05 January 2018 by Cryptovest Staff

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A majority of American adults have heard of cryptocurrency, but most do not have an idea what it is.

A survey by next-generation cryptocurrency service platform COBINHOOD has found that a majority of American consumers have heard of cryptocurrency but most of them have no idea what the technology is.

"Cryptocurrency is such a popular topic of conversation right now," stated Popo Chen, COBINHOOD CEO. "However, most people don't know what exactly cryptocurrency is or how they should interact with it.”

What is a Cryptocurrency

A cryptocurrency is defined as “a digital or virtual currency that uses cryptography for security. A cryptocurrency is difficult to counterfeit because of this security feature.” An important feature of a cryptocurrency that adds to its popularity is, it is organic in nature and is not issued by any central authority. In theory, cryptocurrencies are immune to government interference or manipulation.

  • Definition Awareness: Nearly 50 percent of those polled know what cryptocurrency is. A slight majority or 56% of consumers know that it is a digital, decentralized currency designed as a medium exchange, while 22 percent is not aware that it is a digital wallet used for internet purchasing transactions. Some 14 percent thought it was the technology behind debit and credit cards, and 7 percent believed it was a digital version of government-backed money.
  • ICO Awareness: A huge 66 percent of American adults do not know that "ICO" stands for Initial Coin Offering.
  • Trading Knowledge: An overwhelming 78 percent of the respondents do not know where to trade or buy cryptocurrencies.
  • ICO Participation Misconception: Nearly everyone thinks U.S. citizens can participate in ICOs when they cannot always do so.
  • Cryptocurrency Count Misconception: There are over 1,500 cryptocurrencies, but most people are not aware of that, with 44 percent of the respondents believing there are only less than 10 in existence, while 31 percent said that there are 20-50 cryptocurrencies, and 12% said that there are 1,000-1,500.