Recently, the Bank of Canada published its 2018 Bitcoin Omnibus Survey to assess awareness of the king coin and its usage among Canadian citizens. The report utilized logistics regression to analyze the likelihood of Bitcoin awareness and its relation to ownership, since they are both binary events.
On examining the survey data, the report observed that the probability of Bitcoin awareness is affected by age (Awareness recedes with age), gender (females are less likely to be aware) and place of residence (living in regions outside British Columbia). Conversely, the report estimated that Canadians are more likely to be aware of Bitcoin as their education and income increase, as well as if they were able to correctly answer any of the financial literacy questions asked in the survey.
Interestingly, the report also claimed that the likelihood of ownership increases with being unemployed as well.
Another interesting observation made was that the likelihood of Bitcoin awareness increases with financial literacy, while ownership decreases — implying that the more financially literate one is, the less likely they are to own cryptocurrency.
The report added that typical Canadians value the security of online transactions much more than Bitcoin adopters, the latter of whom preferred privacy almost twice as much. Further, the report stated that adopters tend to carry more cash in hand than non-adopters. However, they are also more likely to go cashless.
This could be due to the fact that cryptocurrency adopters probably have a greater preference for decentralization, and a tendency to be distrustful of centralized banking solutions.
Bitcoin can reach $25K if usage crosses 1M people: Thomas Lee
Managing Partner and Head of Research at Fundstrat Global Advisors, Tom Lee, recently made an appearance on CNBC‘s ‘Street Signs Asia‘ segment to talk about Bitcoin price movements in the future. Lee also spoke about why he thinks Bitcoin will touch $25K by 2022.
According to Lee, for an industry that’s over a decade old, these are still early days for digital assets. However, as time passes, it will become very institutional, he said. Fundstrat’s Lee added,
“Over time, it’s going to become an asset class, and once we hit that it’s actually another hockey stick.”
When asked about his prediction for the king coin’s price, Lee said that it had been established back in 2017 as a five-year prediction. According to him, the predicted goal would be easy to achieve due to cryptocurrencies being network value assets — the more people that hold it, the greater its value.
“In fact, it’s a log function, so if you double the users you get a quadrupling of value, and to go to $25,000 you essentially need a 4x rise (a little bit less than that) which means you need to double the number of people who hold Bitcoin.”
According to Lee’s estimates, there are under half a million people in the world who own and use Bitcoin widely today. He also compared Bitcoin to Internet stocks such as FAANG and attributed 70% of their returns since the IPOs to the growth of the Internet over that period of time.
“So in other words, it was a log function of the Internet growth, and that’s how cryptocurrencies are going to work. That’s just saying if you take it to a million users, you could get to $25,000.”