Study Shows: More Speculation, Less Crypto Spending
In 2008, the Bitcoin white paper proposed a radical shift in money with its idea of an open digital cash system.
But recent data from the UK’s Financial Conduct Authority (FCA) reveals a stark contrast in the actual use of Bitcoin and other cryptocurrencies.
According to the FCA, there’s been a significant drop in people buying cryptocurrencies to use for transactions, plummeting from 19% in 2021 to a mere 10% in 2022. Meanwhile, the trend toward speculative buying has remained steadfast.
Reports from the Times shed light on attempts to use Bitcoin at London retailers, showcasing a disillusioning reality. Despite initial promises, many shops have retracted their crypto payment options due to low customer uptake.
Technical glitches also plague crypto transactions, including issues like drained device batteries, incompatible wallet apps, and connectivity problems during payments. These hindrances often push store staff to suggest conventional card payments instead.
Given these adoption barriers and deficient infrastructure, it’s evident that the primary driver behind digital asset investment is speculation.
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The FCA survey emphasizes this, indicating that the top reason for buying cryptocurrency, in both 2021 and 2022, was seen as a high-stakes “gamble,” rising from 38% to 40%, respectively. This reaffirms the speculative nature of crypto investments.
Similarly, research from the Journal of International Financial Markets, Institutions, and Money in 2018 echoes these sentiments, noting that most Bitcoin transactions were linked to speculative investment rather than practical use.
Despite its initial promise as a form of “electronic cash,” Bitcoin’s predominant utilization seems to lean heavily towards speculation, owing to the inefficiencies of existing payment systems.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
