Non -“Non -Deployed Bitcoiner Expenditure Habits: Department of Fact from Fiction
Since the price of Bitcoins continues to fluctuate, many enthusiasts and investors are asking for one thing: Do people really spend their bitcoins? Despite the humbuk around the cryptom market, it seems that the purchase and sale of bitcoins is still mostly theoretical activity. In this article, we dive into the world of cases of use of bitcoins and examine whether someone is actually spending their bitcoins.
What does the “expenses” Bitcoin mean?
For those who do not have to be familiar with terminology, “expenditure” in the context of bitcoin applies to the exchange of bitcoins for the traditional fiat menu. In other words, it means using bitcoins to buy something that cannot be replaced directly, such as jewelry, house or even a new smartphone.
reality is complex: people spend their bitcoins
What does this mean in practice? When buying and selling bitcoins, it is certainly possible, the reality is that people spend their bitcoins at a speed that is much more important than just speculation. According to data from the company research market Fundstrat since 2020:
- The average investor spent around $ 10-20 per month for bitcoins-related transactions (eg purchase and sales of coins)
- More than 50% of online users in the US has at least some knowledge of how to use a cryptocurrency
- Approximately 1.5 million people in the UK asked about their views on cryptocurrencies, stating 42% that they “are not interested” or “are not interested”
What is behind the lack of bitcoin spending?
So what leads to this difference between theoretical expenses and actual transactions? There are several reasons why many people do not use their bitcoins as planned:
* Lack of understanding : Despite increasing awareness of cryptomains, there is still a significant knowledge among consumers. Many do not have a basic understanding of how to use bitcoins or feel uncertain about its safety.
* High transaction costs : Purchase and sale of bitcoin can be expensive due to high transaction fees. This makes it less attractive to those who do not have to have the funds for large purchases.
* Fears for safety : When more people learn about Bitcoin, some are aware of their potential risks such as hacking and theft. This fear can discourage them from using their bitcoins in different ways.
Conclusion: The future is uncertain
When buying and selling bitcoins, it is certainly possible that many people seem to spend their bitcoins at a speed that is proportional to the hype around the crypto market. However, this does not necessarily mean that bitcoin is dead or irrelevant. As more individuals are familiar with how to use cryptocurrencies, we can see a shift to greater adoption and expenses.
Finally, although there are certainly those who do not want to be interested in using their bitcoins for everyday transactions, it is clear that most people still struggle with the complexity of the surrounding cryptocurrency. When space is constantly evolving and growing, one thing is sure: Bitcoin will remain an interesting, but mostly theoretical class of assets until we see more widespread acceptance.
Sources:
- Fundstrato research report (2020)
- Survey of US Consumer Financial Panel (2019)
- National Statistics Office (2019)
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