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In a survey on the heels of the Facebook-crypto news, LendEDU found that while only 7% of adult Americans have ever invested in virtual currency, 18% would be interested in investing in a cryptocurrency created by the social media giant.
Cryptocurrency has come a long way since those wild and volatile times of 2017.
No longer do we see the crazy price swings – like Bitcoin going from $900 to $20,000 in less than a year – and the stories of everyday people striking it rich due to some old investments in Bitcoin that they forgot about. In general, it seems that the media buzz surrounding virtual currency has simmered.
However, virtual currencies have been quietly moving towards legitimization and stabilization. One of the most powerful financial institutions in the world, Fidelity Investments, will soon begin buying and selling digital assets for customers, while JPMorgan Chase, led by one-time crypto basher Jamie Dimon, is launching its very own virtual currency.
Now another behemoth, Facebook, is pushing its way into the cryptocurrency space. For over a year, Facebook has been working on their very own digital coin that users will be able to send to one another, in addition to using it to make purchases on the Facebook Marketplace and across the internet.
With over 1.5 billion daily active users that give the social media company an opportunity to upend the world of e-commerce, Facebook’s virtual currency has endless potential. To gauge how interested the everyday consumer would be in a Facebook-created cryptocurrency and to evaluate how it could change the company’s marketplace platform, LendEDU conducted a survey of 1,000 adult Americans and found some pretty interesting results.
Full Survey Results
The following survey was administered to 1,000 adult Americans.
1. Have you invested, or are you currently invested, in cryptocurrencies like Bitcoin, Ethereum, Ripple, etc.?
- 7% of respondents answered “Yes”
- 91% of respondents answered “No”
- 2% of respondents answered “I’d rather not say.”
2. There have been reports that Facebook is working on their own cryptocurrency that users could use to send to one another and make payments on Facebook and across the internet. The cryptocurrency could also be used to buy and sell products on the Facebook Marketplace. Would you be interested in investing in such a Facebook-created cryptocurrency?
- 18% of respondents answered “Yes”
- 59% of respondents that answered “Yes” to Q1 also answered “Yes” to this question
- 15% of respondents that answered “No” to Q1 answered “Yes” to this question
- 64% of respondents answered “No”
- 30% of respondents that answered “Yes” to Q1 answered “No” to this question
- 67% of respondents that answered “No” to Q1? also answered “No” to this question
- 18% of respondents answered “I’m not sure.”
- 11% of respondents that answered “Yes” to Q1 answered “I’m not sure,” to this question
- 18% of respondents that answered “No” to Q1 answered “I’m not sure,” to this question”
3. Asked only to those who answered “Yes” to Q2) Would the fact that the cryptocurrency is being launched by Facebook persuade you to invest in their cryptocurrency versus another?
- 57% of respondents answered “Yes, I trust them more than the cryptocurrency companies to deliver a reliable product.”
- 32% of respondents answered “No, that does not really change anything.”
- 11% of respondents answered “I’m not sure.”
4. Asked only to those who answered “Yes” to Q2) Have you ever used the Facebook Marketplace in the past to buy or sell products?
- 65% of respondents answered “Yes”
- 35% of respondents answered “No”
5. Asked only to those who answered “Yes” to Q2) Would having the ability to use the Facebook-created cryptocurrency to buy and sell products on their marketplace entice you to use the marketplace more than previously?
- 73% of respondents answered “Yes”
- 78% of respondents that answered “Yes” to Q4 also answered “Yes” to this question
- 63% of respondents that answered “No” to Q4 answered “Yes” to this question
- 19% of respondents answered “No”
- 14% of respondents that answered “Yes” to Q4 answered “No” to this question
- 27% of respondents that answered “No” to Q4 also answered “No” to this question
- 8% of respondents answered “I’m not sure.”
- 8% of respondents that answered “Yes” to Q4 answered “I’m not sure,” to this question
- 10% of respondents that answered “No” to Q4 answered “I’m not sure,” to this question
6. Asked only to those who answered “No” to Q2) Would the fact that the cryptocurrency is being launched by Facebook be part of the reason that you wouldn’t invest in their cryptocurrency versus another?
- 27% of respondents answered “Yes, I do not trust them, especially with my money.”
- 65% of respondents answered “No, I just would never be interested regardless.”
- 8% of respondents answered “I’m not sure.”
Observations & Analysis
A Facebook Virtual Currency Entices Even Those Who Have Never Invested in Cryptocurrency
The most interesting trend coming from this survey was seeing how a Facebook-created virtual currency would get consumers who have never invested in cryptocurrency before interested in the market.
While only 7% of all respondents have ever invested in a currency like Bitcoin or Ethereum before, 18% of poll participants indicated that they would be interested in buying into a cryptocurrency by Facebook.
The results become more telling when segmented. Amongst the 91% of respondents that have never invested in virtual currencies before, 15% of them were intrigued to invest in a Facebook-created currency, while 67% were not.
And then within the 7% of the respondent pool that had actually been invested in cryptocurrencies like Bitcoin, 59% were interested in getting involved with a virtual currency created by Facebook, while just 30% indicated no interest.
Facebook has the ability to tap into a considerable percentage of Americans (and their bank accounts) that have alluded the biggest virtual currencies like Bitcoin, Ethereum, and Ripple. Our data seems to indicate that this is in large part due to Facebook’s potent brand.
Facebook’s Brand Seems To Be a Positive For It’s Crypto-Aspirations
It is fair to say that Facebook has dealt with it’s fair share of scandals, from data-sharing to data-breaches, that have likely caused the social media giant to fall out of the good graces of some consumers.
However, our survey data indicates that the Facebook brand may actually help the company in its virtual currency endeavors, not hurt it.
For consumers interested in investing in the Facebook virtual currency, Facebook is more of a reason to buy into the cryptocurrency compared to those who are not interested in investing and cite Facebook as partly why.
Specifically, 57% of those that want to invest in a Facebook-created currency cite their trust in Facebook to deliver a reliable product as opposed to another cryptocurrency company. Comparatively, only 27% of those not interested in investing point to their lack of trust in Facebook, especially when handling their money.
This is a very positive-indicator for Facebook and the company’s aspirations to become a major player in the virtual currency space. In general, it seems that virtual currencies already fight an uphill battle in battling skeptics who may see the financial instrument as unsafe or illegitimate.
Couple those thoughts with Facebook’s heavily reported scandals and security issues and one might think that a Facebook cryptocurrency would struggle immensely to gain traction and trust amongst investors.
However, it appears the exact opposite may happen, and Facebook’s incredibly potent brand and immense daily active user base will work to the company’s advantage when launching a virtual currency.
The Facebook Marketplace Would Benefit From a Virtual Currency
The final conclusion from our survey of 1,000 adult Americans revolves around the Facebook Marketplace in that it would likely stand to benefit from a Facebook-created cryptocurrency.
While 65% of our respondents that were interested in investing in the Facebook currency indicated that they already have used the Facebook Marketplace to buy and sell products, 73% of that same cohort indicated that the ability to buy and sell products on the Marketplace by using the Facebook virtual currency would entice them to use the e-commerce platform more than previously.
So, not only did respondents indicate that they would be more willing to use the Facebook Marketplace if they could also use the Facebook-created virtual currency, but the segmented results showed something even better for Facebook.
78% of those 65% of poll participants that have already used the Marketplace answered that the Facebook currency would make them use the e-commerce platform more, while only 14% would use it the same amount.
Even more impressively, 63% of those 35% of respondents that have yet to use the marketplace revealed that they would likely start to use the Facebook Marketplace if they can utilize the Facebook-created crypto on the platform, while only 27% said they would still not use it.
These data-points represent just more good news from this survey for Facebook and the company’s cryptocurrency. One of the biggest obstacles for virtual currencies like Bitcoin is that investors have no real world application for them.
However, with the Facebook-created coin’s ability to be applied to the Facebook Marketplace where consumers can use it to buy and sell goods, Facebook has found a direct use of its coin that will only bring in more revenue for the social media platform.
And on top of all that, it looks like Facebook users and those who invest in the company’s coin will utilize the Facebook Marketplace to a new level because of the Facebook virtual currency.
All of the data that can be found within this report derives from an online survey commissioned by LendEDU and conducted online by polling company Pollfish.
In total, 1,000 adult Americans aged 18 and up were surveyed for this particular poll. Respondents were screened using Pollfish’s age filtering feature to ensure we surveyed appropriately aged consumers.
The survey was conducted over a two-day span, starting on May 10th, 2019 and ending on May 11th, 2019. All respondents were asked to answer all questions truthfully and to the best of their abilities.
You can check out the original post here.
In his role at LendEDU, Mike uses data, usually from surveys and publicly-available resources, to identify emerging personal finance trends and tell unique stories. Mike’s work, featured in major outlets like The Wall Street Journal and The Washington Post, provides consumers with a personal finance measuring stick and can help them make informed finance decisions.