The Crypto Knowledge Barrier: Why Most Americans Aren't Investing
Even as Bitcoin trades near all-time highs and new regulations like the Genius Act bring stability to the crypto market, a staggering 90% of Americans who don't own crypto cite lack of knowledge as their main barrier. According to a survey by the National Cryptocurrency Association (NCA), nearly half of non-crypto users admit they simply don’t understand how cryptocurrencies work.
Trust Issues and Volatility
The collapse of FTX in 2022 and the arrest of its founder, Sam Bankman-Fried, left a lasting scar on public trust. Years later, many customers are still waiting for reimbursements. Add to that Bitcoin’s notorious volatility—after peaking at $68,742 in 2021, it crashed over 70% the following year—and it’s no surprise that cautious investors remain hesitant.
The Decentralization Dilemma
A significant 41% of respondents don’t understand who or what “backs” cryptocurrencies, despite their decentralized nature. Stu Alderoty, president of the NCA, compares crypto’s current stage to the internet in 1996—a revolutionary technology still searching for mainstream clarity.
Education as the Key to Adoption
Over 50% find researching crypto overwhelming, and only 14% have discussed it with friends or family. However, those who do talk about crypto are far more likely to adopt it. Alderoty believes better education—driven by the crypto industry itself—could unlock widespread adoption and potentially drive prices higher.
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