Americans Lack Enough Understanding About Bitcoin
According to the survey by a British firm, Americans don’t easily grasp new financial terms.
A Majority of Americans Don’t Know Much About Bitcoin
A new survey has come out to reveal how best Americans understand the term bitcoin. According to the survey by Knowledge Academy from the UK, a majority of Americans are not sure about the meaning of bitcoin. About 1, 135 Americans were interviewed during the study. The study was also geared towards determining how Americans understand popular financial terms.
The results revealed that bitcoin ranked the lowest. It was the least understood term. However, the outcome should not come as a surprise because the product is still new in the market. Additionally, Americans do not have much understanding of the index fund with 49% of the respondents stating that they were not sure about the meaning. On asset allocation, approximately 44% stated that they were not sure, while 43% represented those who don’t know much about stock options.
About 42% of Americans said that they lack enough knowledge on the term endowment, 41% represented annuity, capital gains stood at 40%, Roth IRA is at 39%. About 39% of Americans said that they are not sure about the mutual fund, 37% showed uncertainty about liquidity, 37% indicated that they lack details on amortization while 36% stated that they do not understand more about premium.
In general, past research has revealed that the uptake of financial terms by Americans is low, hence the reason for the slow understanding of bitcoin. On the other side, the researchers discovered that the term savings account was the most popular among most Americans. 88% of the respondents said that they are confident about the term. Credit union ranked second in terms of confidence with 76% of Americans stating that they know more about the term. Third on the confidence rank, was the term net-worth which stands at 72% while assets came in fourth at 70%.
Effects of Low Financial Terms Literacy
Joseph Scott from Knowledge Academy said that lack of understanding about financial terminologies limits the capability of Americans to make effective decisions on a number of aspects. It impacts decisions on investments, property and savings.