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Only 10% of people fully understand how cryptocurrencies work: Kaspersky



Kaspersky cryptocurrency report 2019

According to a new study by Kaspersky Lab, a multinational cybersecurity company, 19% of the world population has purchased cryptocurrency or has involved themselves in the functioning of the market, as of June 17th.

The report adds that almost one-third (29%) of the population have some knowledge about cryptocurrencies, but only a 10% of the population completely comprehend the working of this technology, while around 14% have admitted that they might start using in the future.

This might be attributed to a lack of understanding of the crypto market and trust in the volatility of the technology, according to 31% of the respondents. This not only prevents consumers to adopt cryptocurrency but has also scared existing users into turning against it by making them feel unsure and confused (18%, according to the report).

The firm report says that though cryptocurrency brings in a lot of benefits to its users, quite many customers are still not confident due to concerns regarding security and inconsistency. One thing that can be done by crypto businesses to improve this helpless condition is to do whatever they can to offer protection to their network and ensure the safety and security of their customers’ finances.

Almost 19% of the survey participants have reported that they have experienced hacking attacks, and 15% have become helpless victims of crypto fraud. A section of people even believes that cryptocurrency will not be around forever, and 35% of the respondents believe that the crypto market is a fad and is nothing to be bothered or taken seriously.

Vitaly Mzokov, the head of commercialization at Kaspersky says that one of the main reasons the growth of cryptocurrency is held back is the vulnerability of the technology. Though there is an appreciable hunger among people to use cryptocurrency, investing their money into something so unpredictable and vulnerable seems to be the problem.

To improve the technology and overcome these concerns, partner companies of Kaspersky such as Merkeleon have put themselves forward to develop legitimized platforms, crypto exchanges and crypto payment ecosystems.

Kaspersky itself provides transparent and strong protection for crypto platforms and projects, and is urging crypto businesses to adopt top-notch security practices for smart contract developers, use known and well-established frameworks for smart contracts, and also conduct an assessment by a third party to ensure no possible vulnerability is missed.

Disclaimer: Koinalert’s content is only for information purpose in nature and should not be considered as investment advice. Do your own market research before investing in any cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.

Ashish is a cryptocurrency journalist who has been passionately involved in the bitcoin space since 2016. His interests lie in bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.