A report released by the Bank for International Settlements (BIS) on Thursday, July 1, has interesting findings regarding the characteristics of crypto investors.
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BIS was founded in 1930 in Basel, Switzerland. Its purpose is to serve central banks in their pursuit of monetary and financial stability, to promote international cooperation in these areas, and to act as a bank for central banks.
BIS Working Papers #951, “Distrust or speculation? Socioeconomic drivers of U.S. cryptocurrency investments” was published by the BIS’s Department of Money and Economics, with Chief Economist Dr. Written by Raphael Auer and David Tercero-Lucas, PhD candidate in Applied Economics. This article had three purposes:
- Examine the hypothesis that cryptocurrencies are sought out of distrust in fiat currencies or regulated finance.
- Examine the broader socioeconomic characteristics of US retail consumers and unravel the role of information acquisition and information-based investment decisions.
- Examine the evolution of cryptocurrency investment patterns over time and cryptocurrencies.
Here are two of the interesting findings from this report:
- Higher education level is associated with the probability of owning a cryptocurrency and more knowledge about it.
- Ethereum (ETH) and Ripple (XRP) holders are the most educated in our example, followed by Bitcoin Cash (BCH) and Bitcoin (BTC) users. Conversely, those with Litecoin (LTC) are the least educated.
On 1 July, Dr. Auer sent out a series of tweets highlighting a few of the statements in the report:
In its Annual Economic Report (2021), the BIS has criticized cryptocurrencies in general and Bitcoin in particular in recent months: