Is crypto safe and reliable? Most Americans Say No

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The crypto industry has a lot to prove if it is to gain investor confidence.

Among Americans who know about cryptocurrency, 75% have little or no confidence in its reliability and security, according to a new report from Pew Research.

Only 6% of those familiar with crypto said it was “very” or “extremely” reliable and secure. Another 18% in the survey described the cryptocurrency as “somewhat” reliable and secure.

The study comes after a period of turmoil for crypto markets, marked by a string of crypto company bankruptcies in the summer of 2022 and recent bank failures – including Silicon Valley Bank, which counted the crypto companies. cryptography as an important part of its customer base. Last November, the market was also rocked by controversy over the collapse of the FTX exchange.

The crypto has also proven to be exceptionally volatile, with the prices of bitcoin and other cryptocurrencies plunging in 2022. Even as the value of the crypto market has surged in recent weeks, the scrutiny facing digital assets remains high. Vehement crypto-skeptic Warren Buffett, for example, recently called bitcoin nothing more than a “gambling token.” The SEC continues to warn investors about crypto volatility.

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Aside from government agencies and celebrity investors, being skeptical of cryptocurrency is popular right now. Here is what the Pew report says:

Of the 88% of Americans who know about cryptocurrency, three-quarters are “not at all” or “not very” confident in its reliability and security. Lack of confidence tends to increase among Americans over 50 and women. On the other hand, younger men – who are most likely to invest in crypto – have the most confidence in the security of crypto trading. Chances are, if you have some crypto money, you’ve been in the game for a while. Only 16% of all crypto investors made their first investment in the past year; 84% made their first investment before 2022. A fairly large portion of investors have given up on cryptocurrency entirely: 31% of people who once invested in crypto no longer have any stake in it. About one in five crypto investors said their investment ended up hurting their personal finances. However, 60% say their investments have neither helped nor hurt them. Ads by Money. We may be compensated if you click on this ad.

Crypto definitely had its moment in the spotlight in 2021, and it managed to bring cryptocurrency into the mainstream. However, most Americans aren’t convinced that crypto is safe or reliable, according to the data.

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