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Only 1 in 10 People Understand How Cryptocurrency Works, Reveals Survey

Criminals also create fake e-wallets to attract people to unwisely invest their money, and 15 per cent of consumers have been victims of cryptocurrency fraud

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Cryptocurrency, virtual currencies
The value of cryptocurrency rises and falls daily. Pixabay

Only one in 10 people understand how cryptocurrencies work while 29 per cent have some knowledge about digital currencies, a new Survey by Russian cybersecurity firm Kaspersky has found.

The rate at which cryptocurrencies are being adopted by global consumers is slowing down, despite celebrities like Johnny Depp and YouTube influencers such as PewDiePie embracing the technology.

“To date, four in five people (81 per cent) have never purchased cryptocurrency, highlighting just how far away we are from it being accepted as a common form of payment or investment,” the findings showed.

Although there is a desire among many consumers to use cryptocurrency, a knowledge gap is getting in the way of taking the plunge.

In addition, many people who thought they knew with what they are dealing with, later decided against using cryptocurrency. Nearly a fifth (18 per cent) stopped because it became too technically complicated.

Nearly a third (31 per cent) of respondents stated that they believe cryptocurrencies are quite volatile and they need to be stable before they are prepared to use them.

Avoid making decisions based on emotions and find reliable sources for information as it will become a trader’s best asset.
Avoid making decisions based on emotions and find reliable sources for information as it will become a trader’s best asset.

There is also a common perception among consumers that cryptocurrency will not be around forever.

A third (35 per cent) believe cryptocurrencies are a fad that is not worth bothering about.

“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,” explained Vitaly Mzokov, Head of Commercialization at Kaspersky.

While widespread interest in cryptocurrencies may have already peaked, there is still a demand to use the technology. A fifth (20 per cent) of those surveyed said that while they are not using cryptocurrency at the moment, they would like to in the future.

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Fraudsters can use cryptocurrencies to their advantage, with around one in five (19 per cent) of those surveyed saying they have experienced hacking attacks on exchanges.

Criminals also create fake e-wallets to attract people to unwisely invest their money, and 15 per cent of consumers have been victims of cryptocurrency fraud. (IANS)

Next Story

Facebook Buys Servicefriend To Boost Cryptocurrency Libra Experience

Aiming to make its cryptocurrency Libra customer friendly when it arrives next year, Facebook has acquired a startup called Servicefriend

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facebook, servicefriend, startup, cryptocurrency, libra
Bitcoin, which has risen in value for eight consecutive days, received a boost after Facebook has said it would offer its own cryptocurrency, the Libra coin by end of June 2020. Pixabay

Aiming to make its cryptocurrency Libra customer friendly when it arrives next year, Facebook has acquired a startup called Servicefriend that builds Artificial Intelligence (AI)-driven bots for messaging apps.

The Israel-based startup is known for building “Hybrid Bot Architecture” – an approach that offers the enterprise the scalability of a bot with the intelligence, comprehension, and empathy of a human.

“We acquire smaller tech companies from time to time. We don’t always discuss our plans,” a Facebook spokesperson told TechCrunch.

“Facebook’s plan is to build a range of financial services for people to use Calibra to pay out and receive Libra as for example, to send money to contacts, pay bills, top up their phones, buy things and more,” said the report.

Servicefriend has been deployed by leading enterprises around the world.

By using a hybrid bot for Messenger from Servicefriend to provide meaningful and efficient customer service, the telecom company Globe Telecom successfully increased employee productivity by 3.5 times and reduced calls to its hotline by 50 per cent.

facebook, servicefriend, startup, cryptocurrency, libra
Representations of virtual currency are displayed in front of the Libra logo in this illustration picture. VOA

With Servicefriend, the bot is always the front end, and every conversation receives the same branded, consistent and cohesive experience.

The new digital wallet for ‘Libra’ currency would be available in Facebook Messenger, WhatsApp and as a stand-alone app in 2020.

ALSO READ: Facebook Selects Six Projects from India for AI Ethics Research

Facebook has tied up with 27 organisations around the world to start the non-profit Libra Association to create the new currency. (IANS)