"My Friends Own Bitcoin" Helps Drive Bitcoin Adoption

Bitcoin used to be a fringe asset, but that's changing. The momentum is growing. This is in no small part due to people knowing more people who have Bitcoin or other cryptocurrencies. Word gets around, and people start to imitate what others are doing just because their doing it.

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Canada is one nation that saw 72% increase in bitcoin ownership from 2016 to 2017. The 2017 Bitcoin Omnibus Survey (BTCOS) conducted by the Bank of Canada last year between December 12 to 15 showed that approximately 5% of Canadians own Bitcoin which is up from 2.9% from the previous year's survey.

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True, 5% isn't a lot, by 72% increase in one year says something about the increasing popularity of crypto. With bull run the at the end of December, this might have increased as well, but we'll only find out in next year's survey. More people could have been attracted into investing as the prices soared high.

The reason for purchasing Bitcoin seems to have changed from the 2016 to 2017 survey. In 2016, it appears that the majority of Canadiansbitcoin holders (39%) did so for transactional purposes. The used BTC to pay for things and send money to other people who presumably paid for things as well. But during the bull market of December 2017, the ballooning transactional fees coincided with a shift in holding bitcoin, where 58% of Canadian bitcoin owners said they were using it as an asset for investment.

As the price soared, people might've recognized bitcoin as a big player in the asset class of investments. Many people probably thought that Bitcoin was "going to the moon" and they feared missing out. Fear of missing out (FOMO) likely drew many into becoming Bitcoin owners.

There are many speculations for why more people are getting into bitcoin and crypto. Making money surely is a driving force. Some people don't even understand bitcoin and crypto yet are getting into it. According to the Bitcoin Omnibus Survey of 2017, 12% of respondents said the main reason they bought Bitcoin was because "my friends own bitcoin."

Despite an overall low percentage of ownership in Canada, the survey indicates that bitcoin has become a recognized brand name. Even though only 5% of the population may own Bitcoin, 85% of Canadians are at least aware of bitcoin. In the 2016 survey, awareness of bitcoin was at 64% of the Canadian population.

Are factor that may be driving an increased awareness is from the cryptocurrency mining business. Canada has favorable conditions for mining due to the surplus of electricity leading to more affordable energy rates, as well as cooler average temperatures which also helps to reduce electricity costs for cooling.

With the downfall of Bitcoin in 2018 from its meteoric height at the end of December 2017, it's possible next year's survey will show a decrease in crypto ownership. If it does, then that means people don't understand that they shouldn't have bought bitcoin when it was high if they got screwed over that way. Judging from Ontario, the most populated province, it seems there will indeed be a decrease in crypto holders. In another survey, 4% of Ontarians used to own crypto but had sold it off, while 5% still own crypto assets.

Instead of seeing a decrease in Bitcoin ownership, there should be an increase in ownership if people understand that they need to buy low. Bitcoin is valued much lower and is likely going to climb again. The opportunity is knocking, and maybe some people understand how the market works more and are ready to answer the call.

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