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Explaining bitcoin ownership in Canada: Trends from 2016 to 2021

Author

Listed:
  • Daniela Balutel
  • Walter Engert
  • Christopher S. Henry
  • Kim P. Huynh
  • Marcel Voia

Abstract

This paper studies the dynamics of bitcoin ownership from 2016 to 2021, using the Bank of Canada's Bitcoin Omnibus Surveys. The estimated rate of bitcoin ownership jumped to 13% in 2021, up from the 5% observed in the previous three years. On one hand, this increase reflected broader economic trends related to increased savings and investment of Canadians during the COVID‐19 pandemic, along with financial technology companies providing accessible and user‐friendly platforms for buying bitcoin. Looking deeper, we use econometric models to quantify several specific ways in which bitcoin became more mainstream as an investment in 2021. Finally, we investigate the high cash holdings of bitcoin owners across time. Explication de la possession de bitcoins au Canada : tendances de 2016 à 2021. Cet article étudie la dynamique de la possession de bitcoins entre 2016 et 2021, en s'appuyant sur les résultats des enquêtes‐omnibus sur le bitcoin menées par la Banque du Canada. Le taux estimé de possession de bitcoins a grimpé à 13 % en 2021, par rapport à 5 % au cours des trois années précédentes. D'une part, cette augmentation reflète des tendances économiques plus larges liées à l'augmentation de l'épargne et de l'investissement des Canadiens pendant la pandémie de COVID‐19, ainsi qu'aux sociétés de technologies financières fournissant des plateformes accessibles et conviviales pour l'achat de bitcoins. Pour aller plus loin, nous utilisons des modèles économétriques pour quantifier plusieurs façons précises dont le bitcoin est devenu plus courant en tant qu'investissement en 2021. Enfin, nous étudions l'importance des liquidités détenues par les propriétaires de bitcoins au fil du temps.

Suggested Citation

  • Daniela Balutel & Walter Engert & Christopher S. Henry & Kim P. Huynh & Marcel Voia, 2024. "Explaining bitcoin ownership in Canada: Trends from 2016 to 2021," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 57(3), pages 777-798, August.
    • Handle: RePEc:wly:canjec:v:57:y:2024:i:3:p:777-798
    DOI: 10.1111/caje.12724
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    References listed on IDEAS

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