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Private Digital Cryptoassets as Investment? Bitcoin Ownership and Use in Canada, 2016-2021

Author

Listed:
  • Daniela Balutel
  • Walter Engert
  • Christopher Henry
  • Kim Huynh
  • Marcel Voia

Abstract

This report studies the dynamics of Bitcoin awareness and ownership from 2016 to 2021, using the Bank of Canada’s Bitcoin Omnibus Surveys (BTCOS). In 2021, Canadians’ awareness of Bitcoin remained stable at about 90%, while ownership increased to 13% from the 5% observed in 2018-2020. Canadian Bitcoin owners in 2021 were more likely to be male, aged 18 to 34 years old, with a university degree or high income. They largely see Bitcoin as an investment. A new question added to the 2021 BTCOS helps us understand the influx of investors to the Bitcoin market. Responses to this question show that roughly half of current Bitcoin owners invested during the COVID-19 pandemic (2020-2021). These recent owners differ in several ways from long-term owners. Finally, we document the broader economic context of the increase in Bitcoin ownership: widespread increases in savings and wealth by Canadian households during the pandemic, coupled with financial technology (Fintech) companies providing accessible and user-friendly platforms for buying Bitcoin.

Suggested Citation

  • Daniela Balutel & Walter Engert & Christopher Henry & Kim Huynh & Marcel Voia, 2022. "Private Digital Cryptoassets as Investment? Bitcoin Ownership and Use in Canada, 2016-2021," Staff Working Papers 22-44, Bank of Canada.
    • Handle: RePEc:bca:bocawp:22-44
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    References listed on IDEAS

    as
    1. Fujiki, Hiroshi, 2020. "Who adopts crypto assets in Japan? Evidence from the 2019 financial literacy survey," Journal of the Japanese and International Economies, Elsevier, vol. 58(C).
    2. Annamaria Lusardi & Olivia S. Mitchell, 2014. "The Economic Importance of Financial Literacy: Theory and Evidence," Journal of Economic Literature, American Economic Association, vol. 52(1), pages 5-44, March.
    3. Helmut Stix, 2021. "Ownership and purchase intention of crypto-assets: survey results," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 48(1), pages 65-99, February.
    4. Christopher Henry & Kim Huynh & Gradon Nicholls, 2018. "Bitcoin Awareness and Usage in Canada: An Update," Staff Analytical Notes 2018-23, Bank of Canada.
    5. Bruce Mizrach, 2022. "Stablecoins: Survivorship, Transactions Costs and Exchange Microstructure," Papers 2201.01392, arXiv.org, revised Feb 2023.
    6. Christopher Henry & Kim Huynh & Gradon Nicholls & Mitchell Nicholson, 2019. "2018 Bitcoin Omnibus Survey: Awareness and Usage," Discussion Papers 2019-10, Bank of Canada.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Bank notes; Digital currencies and fintech; Econometric and statistical methods;
    All these keywords.

    JEL classification:

    • E4 - Macroeconomics and Monetary Economics - - Money and Interest Rates
    • C12 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Hypothesis Testing: General
    • O51 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - U.S.; Canada

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