Explaining bitcoin ownership in Canada: Trends from 2016 to 2021

Abstract

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.