A group of scientists from the University of Cincinnati has developed a methodology to assess consumer awareness in the context of using cryptocurrency assets and the technical features of their operation. 

Scientists Developed Scale for Measuring Knowledge in Crypto Economy

The research group at the University of Cincinnati has published the study “Measuring Crypto Literacy,” which presents the concept of Crypto Literacy Scale (CLS). It’s a scale of user literacy in relation to cryptocurrencies. In their work, the scientists focused on the fact that similar methodologies exist and are actively used to assess financial literacy, but such criteria are absent in the context of digital assets. 

The scientists derived their theory from a qualitative study of 501 respondents. The average age of the respondents was 38 years old, and all of them were active crypto users. They also compiled the most common portrait of an active crypto owner in the U.S. — a white (77%) male (75%) with a bachelor’s degree (45%) or a high school graduate without a college degree (30%). 

The CLS methodology includes ten questions that record experiences with digital assets, revealing the following data: 

  1. The number of different cryptocurrencies owned. 
  2. The duration of owning cryptocurrencies. 
  3. Time spent studying information about cryptocurrencies. 
  4. Motivations and methods for purchasing cryptocurrencies. 

The specific questions used for the Crypto Literacy Scale assessment aren’t provided in the document. 

The authors expect their methodology to help assess and standardize economic and financial knowledge related to consumers’ and policymakers’ understanding of cryptocurrencies and related technologies. The researchers also note that awareness of cryptocurrencies and blockchain technologies plays a crucial role in preventing digital asset fraud. 

Other studies indirectly confirm the relevance of the proposed methodology. For example, according to a CNBC research, about 57% of American adults could be considered financially literate in the context of traditional finance in 2022. However, a YouGov study conducted in 2021 among users of digital assets showed that crypto literacy was demonstrated by 4% of respondents from the United States and 1% of residents from Brazil and Mexico. 

CP Media has prepared a free educational course “Enter to Crypto. Starter Edition” in English, focused on beginners in this field. 

Author: Mark Wallerstein
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