Study: Americans Are Least Confident about the Financial Term ‘Bitcoin’

Terminology is a gift from the Gods, period. If there hadn’t been the concept of terminology we would have spent half our lives explaining simple things. Having said that, the concept itself can also become a pain in our lives, mostly when we don’t understand them. Such is the thing about financial terminology, especially cryptocurrency’s terminology.

Unless we have successfully completed a course in it, we simply feel alien when financial terms are thrown at us. Terms related to areas such as savings, banking, mortgages, investments, crypto, Bitcoin etc. prove to be very tricky to digest and get a hold of. A new study reveals that ‘Bitcoin’ is a financial term that even though Americans recognize, they also still feel the least confident about.

The top financial terms people are unaware about

At the top of the list is the most talked about word in the past 2 years – Bitcoin. The survey shows that about 55 percent of the American population were not confident about the meaning of the term. It is a digital currency which is decentralized and can be sold and purchased on a secure and public ledger known as blockchain. This result is very much unexpected as the market position of Bitcoin is very prominent in the world of cryptocurrency with its trading volume inching upwards every hour.

Around 50 percent of the population aren’t confident of the term Index Fund and to some extent it is justified owing to the small exposure the term is subject to. It is actually an exchange-traded or mutual fund which can track the index of bonds, stocks and any other kind of underlying investments. It was created with the sole purpose of doing so.

The third term with a solid 42 percent of unawareness is Endowment, though it is hard to understand why. Endowment is a monetary present or gift made to a community or Institution for providing an annual income. Speaking strictly financially, an endowment policy is an insurance or mortgage paid on a monthly basis, which when accumulated at the end of the period would provide sufficient money to pay for the house.

Finally, on the list with a healthy 40 percent is the financial phrase Asset Allocation, it is an investment strategy which tries to balance reward and risk by apportionment of the portfolio’s asset on the basis of individual goals, investment horizon and risk tolerance.

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