A recent survey has found that the majority of cryptocurrency owners rarely use it for making payments. One somewhat unexpected reason postulated for this is that some people are still nervous about making cryptocurrency transactions.
Only 30% Use Crypto as Currency
The Foundation for Interwallet Operability (FIO), a consortium of crypto wallets, exchanges, and payment processors, has conducted a survey of over 200 cryptocurrency owners. They were asked multiple questions about their experiences in transacting, shedding light on the issues that are holding back wider usage.
The findings show that during 2018, only 30% of users sent any coins to a third party or alternative account at least once a month. 43% of respondents sent coins to another party or made a purchase with crypto only a few times during the entire year, and 27% didn’t even do so once. This means that 70% of crypto holders either never or rarely use cryptocurrency for making any type of payments.
The research also found that 13% of owners never used a wallet that stores their private keys. Regarding the diversification of digital asset portfolios, about half of those surveyed hold between one and five different cryptocurrencies at the same time, another quarter hold between six to 10, and about one in 10 holds over 20 different coins.
Still Too Afraid to Trade?
One reason for cryptocurrency users not using it for payments is that some people are still nervous about completing transactions. According to the survey, only about 25% of people who sent coins to someone else in 2018 felt “very comfortable” immediately after sending. The majority of users, about 58%, felt only cautiously optimistic. The remaining 17% of users felt some level of anxiety, including 5% who were very nervous about the transaction not going as planned. This sensation seems to pass with experience, as 40% of users who acquired their first crypto over three years ago marked themselves as being very comfortable, while only 21% of users who have held coins for less than three years felt the same.
Asked to freely write what other challenges they have experienced sending and receiving crypto, people mainly complained about confusing and high fees as well as long and uncertain conformation times. Problems with address formats and buggy wallets were additionally a common issue. Sample comments include: “Setting a mining fee too low on BTC that took 2 months to get picked up,” and “Long time waiting [for] the transaction with BTC.”
What do you think about the findings of this survey? Share your thoughts in the comments section below.
Images courtesy of Shutterstock, The Foundation for Interwallet Operability.
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