By CCN Markets: 19 percent of survey participants have reported that they had experienced hacking attacks on cryptocurrency exchanges while 15 percent of consumers have become victims of crypto fraud, Kaspersky says.
An excerpt from the cybersecurity firm’s report read:
“Cryptocurrency certainly has its benefits but, as we can see, many consumers are still unaware of what they are due to concerns over security and how the technology works. It is an exciting industry to be involved in but it is one that is built upon trust. It is, therefore, imperative that cryptocurrency businesses do all they can to protect their networks and ensure their customers’ finances are safe and secure.”
An Uncharted Territory
The Moscow-based anti-virus and cybersecurity company concluded in its survey that – despite the growing interest among consumers – only one in ten people fully understand how cryptocurrencies work with 29 percent of the participants stating that they have “some knowledge” of digital currencies.
According to Kaspersky, the lack of knowledge on the consumer side is slowing down the adoption rate of cryptocurrencies, even though celebrities like Johnny Depp and PewDiePie are embracing the technology.
While there’s a desire in consumers to use crypto, the knowledge gap makes many of them decide not to carry out with buying coins. To date, 81 percent has never purchased cryptocurrencies, and 18 percent chose not to use them as they deemed digital currencies too technically complicated, the survey concludes.
“Many people who thought they knew with what they are dealing with, later decided against using cryptocurrency,” Kaspersky stated.
No Trust in Crypto
According to Kaspersky, the lack of understanding could result in consumers not trusting cryptocurrencies with their funds.
31 percent of the participants believe that cryptocurrencies are highly volatile, and they need to be more stable before they can use them. Even more, 35 percent, of the survey takers think that crypto is nothing more than just a fad that they don’t want to be bothered with.
Cryptocurrency-related crime had taken its toll on the popularity of digital currencies. With 15 percent of consumers victimized by crypto fraud and one in five survey participants (19 percent) targeted by hackers on exchanges, many people fear that they risk a lot if they decide to use digital currencies.
“It is clear that mainstream adoption and growth of cryptocurrency is being held back due to the vulnerable nature of the technology. While there is a high appetite to use it, giving your hard-earned cash to something you don’t fully understand, or trust, is a hurdle. With the safety of investments being of paramount importance to consumers, it is vital that they take their own steps to safeguard it. Like with any cyberthreat, there is no substitute for vigilance – if something looks too good to be true, then it probably is,” Kaspersky’s Head of Commercialization Vitaly Mzokov stated.
Crypto Demand Remains High
Despite all the issues that can slow down their mainstream adoption, the demand for cryptocurrencies remains high. Every sixth (14 percent) of survey participants stated that while they do not hold crypto at the moment, they would like to buy some in the future.
Seems demand is increasing for the most predictably scarce asset in the history of mankind. #bitcoin
— Stephen Cole (@sthenc) June 21, 2019
And this is great news for the crypto industry. As Bitcoin’s price is almost hitting $10,000 with predictions that it will surpass that price level in June due to Facebook’s Libra being a trending topic, it seems like we are just entering a “crypto summer”.