Recently, Elastos has released Inaugural BIT Index (Bitcoin,
Innovation & Trust) to track awareness, knowledge and use of
Bitcoin around the globe. The report shows that Nigeria and UAE
markets surge towards Bitcoin, overtaking traditional payment
methods. 23% respondents from Nigeria and 20% of those from the UAE
use Bitcoin every day (global average 15%); compared with Germany
(just 8%) and the UK (9%).
Nigerian consumers are leading the shift
in terms of usage, trust levels and optimism for the
future.
One-in-five Nigerian (20%) consumers are using
Bitcoin to conduct transactions 'at least once a day', while 67%
would have more trust in Bitcoin to project their life savings than
traditional services such as banks, local Governments and, even,
cash, according to new research published by Web3 infrastructure
specialists, Elastos.
The inaugural BIT Index (Bitcoin; Innovation
& Trust) – compiled from over 1,400 self-defined 'tech savvy'
respondents from 7 countries across the globe* – sheds light on the
actual perception and use of Bitcoin in people's daily lives,
irrespective of its current valuation. Elastos' BIT Index is part
of ongoing research to better track the 'real world' use of Bitcoin
together with users' motivations, expectations and barriers around
the same.
In particular, the data reveals the role being
played by emerging markets in terms of understanding, usage and
confidence around Bitcoin. Nigerian respondents' levels of usage
and trust compare starkly with those expressed from so-called
'established' markets such Germany and the UK and Germany where
daily usage levels are just 8% (for German respondents) and (9% for
their UK counterparts).
In terms of trust – in addition to Nigeria –
significant proportions of respondents from Brazil (35%) and the
UAE (32%) would have more confidence in Bitcoin-based services to
protect their life savings compared to those from markets such as
the UK (20%) and Germany (22%).
When it comes to ensuring the integrity of
online transactions, emerging market respondents also revealed
their relative confidence in Bitcoin, compared to alternatives.
According to the data 66% Nigerian respondents and 35% from Brazil
have more confidence in Bitcoin-based systems than alternatives
such as banks, or national Governments, compared to figures of just
16% (Germany) and 21% (UK) who feel the same.
Jonathan Hargreaves, Elastos' Global Head of
Business Development & ESG, described the BIT Index's inaugural
findings as indicative of the role the 'global south' is playing in
the adoption of decentralized currencies such as Bitcoin.
"The BIT Index offers a fascinating and sobering
insight into the industry. The fact that over two-thirds of
Nigerian consumers and a third of their counterparts from the UAE
and Brazil would feel more confident entrusting their life savings
in Bitcoin than traditional financial instruments speaks volumes
about the protagonism these regions are already playing. In many
instances, the driving factor is the absence of viable – accessible
– alternatives to, for instance, conduct cross-border transactions
or mitigate the impact of inflation," he says.
In terms of usage, the research revealed the
purpose to which Bitcoin was increasingly becoming a currency of
choice amongst emerging market consumers:
- To send
and receive money from abroad: Nigeria (48%), compared to a global
average of 28%); Germany (just 18%), the UK (20%)
- To store
savings; Brazil (51%) and Nigeria (49%) compared to a global
average of 43% (South Korea, just 27%)
These respondents also revealed optimism with
respect to the future. According to the data, 78% of Nigerian
respondents and 70% of Brazilians believe that usage (and
valuation) of Bitcoins will continue to rise during the year,
compared to a global average of 60% (UK (42%) and South Korea
(47%)).
The index also covered the issue of this month's
Bitcoin halving, an event conducted every four years when the
incentive for Bitcoin mining (effectively, validating transactions)
is reduced by half; the policy is embedded in the currency's
algorithm and designed to mitigate the effects of inflation by
maintaining scarcity.
While there is considerable speculation about
the impact of this event on valuations, consumers themselves
revealed little awareness or concern about the same with 30%
claiming to have "no idea" what the halving is; and a further 39%
(globally) see it as "irrelevant" to their use of Bitcoin.
"The inaugural BIT Index demonstrates the
global south's role in shaping the decentralized economy; this is
particularly evident in Nigeria where usage, trust and awareness
levels outstrip those of other markets surveyed. Equally revealing
were the reasons behind Bitcoin's adoption in markets such as
Nigeria, Brazil and, also the UAE, where issues such as
cross-border payments, savings protection and mitigation of
(traditional) banking charges are predominant. Insights such as
these will be crucial in defining the next generation of Bitcoin
apps and services in the global south and beyond," says
Jonathan.
With its Bitcoin Layer 2 technology, BeL2,
Elastos is building the infrastructure to allow Bitcoin users to
transact directly with buyers/sellers on any terms they choose, and
without the requirement to share personal data with any third
party. Launched in December last year, BeL2 effectively converts
Bitcoin into a Layer 2 digital currency, offering Bitcoin holders
the potential to denominate smart contracts directly in the
currency, reducing transaction fees, and eliminating the need for
intermediaries.
* The research was compiled from online
interviews conducted with 1,407 self-defined 'tech savvy'
respondents in Brazil, Germany, Nigeria, South Korea, UAE, UK, and
US. The interviews were completed by a third party, registered
market research company and completed between 30 March and 04 April
'24.
About Elastos
Elastos is a public blockchain project that
integrates blockchain technology with a suite of reimagined
platform components to produce a modern Internet infrastructure
that provides intrinsic protection for privacy and digital asset
ownership. The mission is to build accessible, open-source services
for the world, so developers can build an internet where
individuals own and control their data.
The Elastos SmartWeb platform enables
organizations to recalibrate how the Internet works for them to
better control their own data.
https://elastos.info
https://www.linkedin.com/company/elastosinfo/
Media Contact
Brand: Elastos
Contact: Roger Darashah, Research team
Email: roger.darashah@elastoselavation.org
Website: https://elastos.info
SOURCE Elastos