Bitcoiners love to believe their complicated version of money will win hearts and minds. But they might be overlooking one crucial aspect – most people don’t even understand traditional finance, let alone the uber complicated digital finance of the future.
Almost two thirds of Americans can’t calculate interest payments. Yet, Bitcoiners believe their complicated digital currency, which incorporates encryption and deflation, will catch on and “revolutionize” finance.
A new study released today determined nearly two-thirds of Americans would fail a basic financial literacy test. They got less than four answers on a five-question quiz correct. How many people who could pass the test has declined since the financial crisis. Last year, just 37% could pass. So, good luck explaining to them SHA-256 and mining.
The FINRA Foundation’s National Capability Study surveyed 27,564 US Citizens from June through October of last year. FINRA regulates brokers on Wall Street.
Only 28% understood what happens to bond prices when interest rates decline; that is, they fall. Fewer than half of all American can answer rudimentary questions about financial risk.