Crypto Complexity Deters 43% Of Users, Survey Reveals Education Gap

15 years after the invention of Bitcoin many potential crypto users still view the sector as too techy and complicated and are hesitant to engage.

Various surveys and expert insights point to this ongoing issue, emphasizing the need for simpler educational materials and user-friendly platforms to close the knowledge gap.

An August survey by Australian crypto exchange Swyftx revealed that 43% of 2,229 respondents had never used cryptocurrency due to uncertainty about how it works. Similarly, the 2023 Crypto Literacy Survey showed that 28% of 3,000 global respondents expressed the same concerns.

Research from the United Kingdom’s Financial Conduct Authority (FCA) in 2023 confirmed these findings. It showed that 30% of 2,337 participants cited a lack of understanding as a key reason for avoiding cryptocurrency.

Lance Morginn, president of Blockchain Intelligence Group, a firm specializing in analytics and marketplace risk management, explained that the crypto market can scare people away with a “plethora” of unfamiliar terms. “On first impressions, it can appear too technical and irrelevant to traditional money. Words such as blockchain, tokens and technology can lead to a sense of intimidation, discouraging people from checking crypto out,” said Morginn.

Crypto Grows as Education Eases Barriers

Despite these challenges, there are signs of progress. Chainalysis, a blockchain intelligence firm, reported in its fifth annual Global Crypto Adoption Index that the launch of spot Bitcoin exchange-traded funds (ETFs) in the United States in January 2024 led to a significant increase in crypto adoption throughout the year. That allows investors to purchase and sell certain types of ETF shares at market prices on stock exchanges without requiring extensive technical knowledge.

Morginn stressed the importance of the industry concentrating on making it easier for new users to get started. The crypto sector needs to “warm” users up and develop clear educational materials and user-friendly interfaces to assist people in becoming more familiar with cryptocurrencies. “As the industry addresses the complexity concerns head-on, cryptocurrencies, and digital assets will reach a wider audience,” said Morginn.

Another major challenge for adopters is managing the storage and security of digital assets. Kadan Stadelmann, chief technology officer at Komodo Platform, emphasizes the need for clearer education. He Security headaches are another issues He warns that overly complex security systems push users toward custodial exchanges, undermining Bitcoin’s core goal of decentralization.

Crypto Innovation Needs Simplicity and Trust

Alicia Kao, Managing Director at crypto exchange KuCoin, acknowledged the industry’s ongoing efforts to make cryptocurrency more accessible to the general population. She pointed out the importance of balancing innovation with simplicity, which involves breaking down complex ideas, creating easy-to-use platforms, and offering thorough educational tools to help users better understand the technology.

Phillip Lord, president of crypto tap payment app Oobit, emphasized the need for a shift in perception: “Crypto shouldn’t feel like a foreign concept — it should be as simple and intuitive to use as any other financial asset, and naturally integrate into users’ daily lives without requiring extensive education.”

A February 2024 survey report from Web3Auth, which gathered responses from 3,378 Web3 users, developers, and decision-makers worldwide, confirmed that the learning curve and complexity remain among the top five reasons cited for avoiding crypto technology.

In May 2023, the European Council adopted the first comprehensive legal framework for the crypto industry, setting a precedent for regulatory clarity. However, other countries and jurisdictions have been slower to create similar frameworks, leaving some potential users waiting on the sidelines for clearer rules.