Survey Shows That Senior Business Executives Don’t Understand Blockchain Technology

Survey reveals that twenty percent of institutions interested in Cryptocurrency


One of the stumbling blocks of institutional and retail investment in the blockchain technology industry is a lack of adequate understanding of the concept. Even governments have placed bans on blockchain technology because they are afraid of what they do not understand and they are not willing to explore it. Even if there has been a lot of hype surrounding the industry for the last two years, a survey revealed that a majority of business executives still don’t understand the concept.


Survey Shows That Of Business Executives Don’t Understand Blockchain Technology


A survey conducted by the Global Blockchain Business Council on institutional investors showed that many senior business executives do not understand blockchain technology. During the survey, PollRight, on behalf of the GBBC, interviewed 71 institutional investors. This included hedge funds execs, private equity execs, and pension fund execs. The respondents noted that the major reason why institutional investors have not fully penetrated the industry is a lack of understanding. About 30% of those interviewed believed they have an average knowledge of blockchain technology. About 7% said the understanding these execs have of blockchain technology is good. Up to 63% said that business executives lack a fundamental understanding of blockchain technology.


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About 76% admitted that most business execs attached to large firms are not fully committed to blockchain technology but they believe that the global blockchain technology expenditure will rise by 108% in the year 2019. Still, 33% of the respondents said there will be a dramatic increase in the application of blockchain technology in the next two years. Many of the respondents said that the healthcare and digital identity industries will benefit the most from blockchain technology.


Blockchain Technology Will Experience A Spike In Adoption


Many high-profile industry insiders have predicted that institutional investors will dive into the blockchain industry in droves this year. In October 2018, crypto bull, Mike Novogratz, said that the first and second quarters of 2019 will be marked by an increased institutional demand in Bitcoin (BTC).


Notwithstanding, reports from Bloomberg last month was that some institutional investors are delaying and even canceling their plans to enter into the cryptocurrency space. This is probably due to the cryptocurrency winter that took the market by storm in 2018. Sources claimed that Morgan Stanley, Goldman Sachs and Citigroup have all stopped the cryptocurrency and blockchain related plans as they wait for the demand to increase.


No one would blame any investor who pulled out of the industry or halted plans to enter last year. This is because the cryptocurrency winter was discouraging. Towards the end of 2017, the price of cryptocurrencies spiked against the USD reaching incredible highs. Bitcoin went as high as $19,500 by January 2018. Bitcoin subsequently started falling against the USD losing more than half of its gains within a few weeks. By December 2018, BTC was down by 80% from its all-time-high. There are many true believers in the industry who still put the technology ahead of the price. However, new entrants are bound to be discouraged by price.


Do you think institutional investors will still come into the industry this year? If they do, do you believe their entrance will help put an end to this extended bear market?

Max writes about blockchain projects and regulation with a special focus on United States and China. He joined Smarterum after years of writing for various media outlets.

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