More Canadians have fallen in love with cryptocurrencies and bitcoin ownership has increased so “sharply” that its ownership demographics are beginning to change, according to a report commissioned by the Bank of Canada released Wednesday.
The proportion of Canadians who owned bitcoin rose to 13 percent in 2021 from five percent in 2020, the central bank said in its 2021 Bitcoin Omnibus Survey, an annual look at the digital currency that the central bank began tracking in 2016. METERbitcoin ownership measures for 2020 come from the bank of canadaAlternative cash survey.
“This increase followed widespread increases in Canadians’ savings and wealth during the pandemic,” the Bank of Canada’s 2021 survey summary said.
Canadian households had a savings rate of 27.2% in the second quarter of 2020, the height of COVID-19, Statistics Canada reported at the time. That number has fallen in subsequent quarters and was 6.2% in the second quarter of 2022, but it is still above the historical national average of about two percent.
All the extra money resulted in what the Bank of Canada report called “significant increases in Canadian investment in mutual funds and securities denominated in foreign currencies, as well as crypto assets.”
The central bank said that easier access to cryptocurrencies also led to more purchases. For example, some fintech companies, such as Wealthsimple Inc., have started offering bitcoin alongside more traditional investment options. A small majority of bitcoin owners (53 percent) made their purchases through apps rather than through web-based exchanges (47 percent), mining (23 percent), or by visiting a Bitcoin ATM, according to the report.
The Bank of Canada survey, conducted in December 2021 by pollster Ipsos, also found that the demographics of bitcoin owners are changing.
Bitcoin owners are more likely to be “relatively young”, well-educated men with a good income. But 68 percent of bitcoin owners age 55 and older were recent buyers, though this age group only accounts for 11 percent of recent owners and 4.6 percent of long-term owners.
“In contrast, both Canadian men and youth (ages 18-34) appear to be slowing their participation in the bitcoin market,” the report says.
The 34-54 age group appears to be picking up the slack, with ownership in that cohort rising to 15 percent in 2021 from around six percent in 2020.
More women also appeared as recent buyers (33 percent) than in the long-term homeowner category (24 percent), but that could be because men tend to “skew” toward the long-term homeowner category, she said. The report.
Owner education profiles are expanding to include more people with a variety of education levels, including college/CEGEP (in Quebec), trades, and high school.
The motivations of new buyers were found to differ from those of long-term homeowners, with the former being more likely to make a purchase for investment reasons than for payment reasons, unlike the latter.
If investing was a motivator, it was also the number one source of trouble for shoppers in 2021. Twenty-five percent of respondents reported experiencing “price drops” in the past year, up from 18 percent in 2019, and it’s no surprise. given the value. of bitcoin fell 35 percent in 2021. The price of bitcoin so far this year is down 60 percent.
Crime was another concern for bitcoin owners.
“Owners also reported experiencing a variety of other incidents, including losing access to their wallets (11 percent), initial coin offering scams (seven percent), stolen funds (seven percent), and data breaches ( six percent),” the report said.
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RBC PROBE The Competition Bureau has opened an investigation into Royal Bank of Canada’s environmental representations and marketing following a complaint last summer that the bank’s claims of being a climate leader were misleading due to its continued financing of fossil fuel projects. RBC said it “strongly disagrees with the allegations in the complaint.” It was introduced by six people with the support of various environmental groups, including Ecojustice and Stand.earth, writes Barbara Shecter of the Financial Post. Photo by Dave Sidaway/Montreal Gazette/Postmedia
- Darren Fisher, Liberal MP for Dartmouth—Cole Harbour; and Shannon Harding, director of education and engagement at the Clean Foundation, will make a clean energy funding announcement
- Pablo Rodríguez, Minister of Canadian Heritage and Lieutenant of Quebec, will announce federal funds to support the growth of SOPREMA, a manufacturing company that specializes in the production of waterproofing, insulation, soundproofing and vegetation solutions for the roofing, building envelope sectors and civil engineering.
- The Saguenay-Le Fjord Chamber of Commerce hosts a “lunch and learn” with Pascale St-Onge, Minister for Sport and Minister responsible for CED. The theme will be the green transition.
- The Parliamentary Budget Officer will publish a new report entitled “Economic and Fiscal Outlook: October 2022” on the pbo-dpb.ca website.
- Canada Mortgage and Housing Corporation publishes a report called “The Road Ahead for the Economy and Housing: Fall 2022 Update”
- Valerie Bradford, Liberal MP for Kitchener South—Hespeler, will make an announcement in support of a Cambridge-based aerospace manufacturer.
- The Future Borders Coalition hosts the 2022 Transportation Border Summit. A bilateral summit on better borders for travel and trade
- Governor General Mary Simon will deliver a keynote address in Reykjavik, Iceland, on global collaboration in the Arctic, followed by a salon discussion with Olafur Ragnar Grimsson, founder and chair of the ACA, on Arctic issues and the role and Canada’s leadership in the Arctic.
- Meeting of finance ministers and central bankers of the G20 ends in Washington, DC
- Today’s data: US inflation, US initial jobless claims for the week of October 8
- Profits: BlackRock Inc., Delta Air Lines Inc., Domino’s Pizza Inc.
A recession will take hold in Canada in the first quarter of 2023, earlier than initially forecast, economists at Canada’s largest bank said on Wednesday.
Royal Bank of Canada made waves in July when its thrift store became the first on Bay Street to forecast a recession. Claire Fan and Nathan Janzen originally predicted the recession would hit in the second quarter, but in a new report they said several factors “will hasten the arrival of a recession in Canada,” including rising interest rates.
“Cracks are forming in Canada’s economy,” Fan and Janzen wrote.
Read the full story here.
It’s a fact that environmental disasters like flooding cause costly damage to Canadian homes every year. Part of the problem is that many homeowners don’t understand the risks that come with the areas where they live, such as flooding. Floods alone cost an estimated $1.5 billion in damages a year, and 75 percent of uninsured losses affect homeowners. Our content partner MoneyWise explores ways to protect your home and budget against devastating losses.
Today’s Posthaste was written by Gigi Suhanic (@gsuhanic), with additional information from The Canadian Press, Thomson Reuters and Bloomberg.
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