The Bank of Canada released a report this week outlining why Bitcoin skyrocketed in the country in 2021. According to the report, researchers mentioned key statistics showing massive parenthood among users in the country. The researchers claimed that about 13% of merchants in the country had adopted Bitcoin since last year. This means that most Bitcoin in the country know dent.
Canadian merchants established a presence in the market in 2021
The Bank of Canada released the report on October 12 as one of the focus points of the Bank’s System Review. The report addressed several key points regarding the adoption and use of digital assets in the country. Five investigators from the financial institution wrote the report.
One of the most notable events that the authors were able to establish is that most traders in the country are aware of massive price corrections involving Bitcoin. Price corrections are phenomena linked to digital assets and occur during bearish market periods. Other than that, the researchers were able to establish a sharp increase in the number of merchants who bought Bitcoin for the first time in 2021.
Bank of Canada researchers explain the metrics
The Bank of Canada report stated that prior to the 13% ownership recorded last year, Bitcoin ownership was only 5% in the previous three years. The massive increase was related to the increased savings culture that most of them employed during the coronavirus pandemic. Although the report states that almost all residents are familiar with the term “Bitcoin”, it also states that most have a different interpretation of what it means.
The report also stated that most of the people who held the asset during the period were not fully aware of what it was at the time.
The researchers said the number was slightly higher than in previous years. The report stated that most asset holders held them because they were fed up with the banking system or because they wanted to invest their extra cash. Other reasons included some merchants using it to pay for products. Last year, around 25% of investors said they suffered losses due to market declines. This figure is high compared to that of 2019, which was 18%. Another metric the researchers mentioned was that Canadians hold small portions of Bitcoin. For perspective, 70% of merchants in Canada have just under 1,500 CAD, confirms the Bank of Canada.
Melissa Galbraith is the World News reporter for Globe Live Media. She covers all the major events happening around the World. From Europe to Americas, from Asia to Antarctica, Melissa covers it all. Never miss another Major World Event by bookmarking her author page right here.