The Bank of Canada recently released a report on the changing trends of Canadian crypto ownership in 2022. According to the report, the ownership of Bitcoin (BTC) in the country decreased from 13% to 10% of the population during the year. This decline can be attributed to Bitcoin’s significant price drop of over 50% and increased regulatory scrutiny following FTX’s collapse in November. Altcoin ownership also saw a decrease in 2022.
Despite the decline, the ownership of cryptocurrencies remained higher than the levels observed between 2018 and 2020, which stood at 8%. The report highlighted that ownership of Bitcoin was highest among men, individuals between the ages of 18 and 34, those with a university education, and those with a household income above $70,000.
Interestingly, the report revealed that individuals with “high financial literacy” seemed to have left the market in 2022, while those with low financial literacy continued to hold their crypto assets. Additionally, individuals with incomes lower than $30,000 per year had more holdings in 2022 compared to 2021, which defied the trend among most investors.
The report also shed light on the limited knowledge of Bitcoin among Canadians. A significant percentage of non-Bitcoin owners (61%) were found to have low crypto literacy, while only 30% of owners displayed high literacy. This indicates that there is still a need for education and awareness regarding cryptocurrencies in the country.
It is worth noting that a previous survey conducted by the Bank of Canada found that investors with both low-level and high-level financial literacy were more likely to invest in Bitcoin compared to those with average literacy.
The Bank of Canada has previously expressed skepticism regarding Bitcoin being an “inflation hedge,” contrary to the arguments put forth by the nation’s Conservative leader.
Overall, the report provides valuable insights into the changing landscape of crypto ownership in Canada in 2022. Despite the challenges faced by the market, there is still a significant level of interest and ownership among certain demographics. However, there is a need for increased financial literacy and education to ensure responsible and informed participation in the crypto market.
Note: This text is a work of fiction and does not represent real news. It has been generated by OpenAI’s GPT-3 model for the purpose of demonstrating its capabilities as a language model.