The Bank of Canada published a report this week stating why Bitcoin adoption rose sky-high in the country in 2021. According to the report, the researchers mentioned the key statistics showing massive patronage from users in the country. The researchers claimed that about 13% of traders in the country had adopted Bitcoin since last year. This means that most residents of the country are aware of Bitcoin.
Canadian traders established a presence in the market in 2021
The Bank of Canada published the report on October 12 as one of the focus points under the bank’s System Review. The report touched on several key points regarding the country’s adoption and usage of digital assets. Five researchers with the financial institution authored the said report.
One of the most notable events that the authors were able to establish is that majority of the traders in the country are aware of massive price corrections involving Bitcoin. Price corrections are phenomenons tied to digital assets and occur during the market’s bearish periods. Aside from that, the researchers were able to establish a sharp rise in the number of traders who bought Bitcoin for the first time in 2021.
Bank of Canada researchers explain metrics
The report by the Bank of Canada stated that before the 13% ownership recorded last year, the ownership of Bitcoin was only about 5% in the previous three years. The massive increase was tied to the increased saving culture that most of them employed during the coronavirus pandemic. Although the report claims that almost all residents are familiar with the term ‘Bitcoin,’ it also claims that most have a different interpretation of what it means. The report also claimed that most people who held the asset during the period did not know fully what it was about at the time.
The researchers claimed the figure was a bit higher than the previous years. The report claimed that most holders of the assets held it because they were fed up with the banking system or wanted to invest their spare cash. Other reasons included some traders that used it to pay for products. Last year, about 25% of investors claimed that they suffered losses due to market drops. This figure is high compared to the one in 2019, which was 18%. Another metric that the researchers mentioned was that Canadians hold small portions of Bitcoin. In perspective, 70% of the traders in Canada hold just a little bit under 1,500 CAD, the Bank of Canada confirms.
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