A comprehensive survey conducted by Binance, a leading blockchain ecosystem and crypto exchange, has shed light on the diverse applications and transformative influence of cryptocurrency in contemporary financial practices. With over 1,000 participants, the survey aimed to understand the primary motivations and purposes behind users’ engagement with digital assets.
Primary uses of cryptocurrency
- Additional income: Approximately 45% of survey respondents identified earning additional income as their main reason for using cryptocurrency. This includes leveraging platforms like Binance Earn to accrue interest at rates surpassing traditional bank accounts.
- Savings and financial security: Saving money was the second most cited reason at 19%, with a focus on achieving financial security and independence. Notably, 36% of participants use cryptocurrency as a savings tool, with 16% doing so for better interest rates and 14% for retirement savings.
- Mitigating inflation: About 9% of the respondents mentioned using cryptocurrency as a means to counteract inflation.
Challenges with traditional financial systems
- High fees and slow transactions: Over one-third of the participants highlighted significant fees (19%) and slow transaction times (14%) as major challenges when dealing with legacy financial systems. Digital nomads, in particular, find cryptocurrency, especially services like Binance Pay, instrumental in facilitating quick, low-cost international transactions.
Impact on income inequality
- Reducing income inequality: A substantial 76% of the survey participants believe that cryptocurrency can contribute to reducing income inequality. This belief is attributed to factors like decreased reliance on traditional financial institutions, increased transparency, and improved financial access for the underbanked.
- Diverse financial strategies: Cryptocurrency is increasingly being used for various purposes, including online purchases (58%), international transactions (12%), and in-store purchases (12%). The survey participants’ experience with cryptocurrency ranges widely, with 59% being involved for 1-5 years, 14% for over five years, and 12% being new to the field.
