Survey: Only 30 Percent of Holders Use Crypto for Payments
While the crypto industry continues to record increased usage in the payments area, a new survey revealed that most cryptocurrency owners don’t use them for making payments.
According to the survey results, only 30 percent of owners said they use cryptocurrencies to pay for goods and services, with 70 percent not content to do so. One reason advanced is that a majority of those who own digital assets are uncertain about the whole process.
The study was conducted by the Foundation for Interwallet Operability (FIO) and took in responses from a group of over 200 cryptocurrency holders. The FIO is a recently created consortium that comprises of digital wallet providers, asset exchanges, and blockchain-based payment processors.
As noted earlier, the FIO findings indicate that less than a third of crypto owners regularly send or pay for goods and services using digital assets.
Of the remaining 70 percent, 43 percent said they either sent crypto or used it to buy items on only once in 2018, while 27 percent never attempted it.
Fear of losing their funds or uncertainty of what could happen appears to be the biggest hurdles that face a large portion of cryptocurrency owners, which then explains why they choose not to use their holdings for purchases.
According to FIO, 25 percent of those who sent coins in 2018 were “very comfortable” after completing the transaction. About 58 percent expressed cautious optimism, while 17 percent said they felt anxious, with 5 percent of them extremely nervous that something may go wrong.
However, although the number of those uncomfortable remains high, it appears these feelings disappear as people gain experience. For example, about 40 percent of crypto holders who bought their first coin in 2016 and earlier say they comfortable sending or paying with crypto. In contrast, about 79 percent of those to acquire their coins recently felt nervous.
Respondents also answered questions regarding what makes transacting with or spending crypto such a challenge. For most, it was a matter of technology and long confirmation times or delayed crypto payments. They also cited hurdles related to wallet addresses and bugs.
Regardless, improvements in the sector could see some of these challenges surmounted, including innovations like the Lightning Network.