Bitcoin:
KnowledgeandPerceptions
Block, Inc. Report 2022

BLOCK, INC. 2022

Overview

2

Bitcoin was originally created as acurrency for the internet, where people
could send and receive money without
going through a financial institution.
In recent years, the dominant narratives
surrounding bitcoin have been solely
focused on its potential as a means tomake money. We sought to dig into thesenarratives further and provide a resourcefor decision makers to better understandpeople’s knowledge and perceptions of
bitcoin across different geographies,
genders, and ages. In early 2022, Block,Inc. partnered with Wakefield Researchto survey 9,500 people in 14 countries
across the Americas, EMEA, and APAC.

The results show that a large portion ofrespondents also see bitcoin as a meansof payment, whether that’s sending
money home to family or buying goods
and services — in line with its founding
principles. Additionally, we found thatthe common perceptions of bitcoin as
male-dominated are not as stark anddisappear completely in many cases,
with a broad and diverse community ofpeople who are enthusiastic and consider
themselves knowledgeable about bitcoin.

BLOCK, INC. 2022

3

1 People See Promise in Bitcoin for a More Equitable Economy
People with lower incomes,
regardless of where they live in theworld, recognize bitcoin’s utility asa payments ecosystem, seeing it as
a way to send remittances and buy
goods and services.

The gender divide in bitcoin
ownership and self-describedknowledge is more pronounced
in the Americas but less maledominated when looking at the restof the world.

Read more →Read more →In many countries, womenfeel as equally includedin the bitcoin community
as men.
Read more →2 Education Is Key: Knowledge Feeds Optimism and Participation
The higher people rate their levelof knowledge, the more optimistic
they are about bitcoin’s future.
People in Nigeria, India, Vietnam,
and Argentina have the highest
rates of optimism globally about
bitcoin’s future.

Lack of bitcoin knowledge is the top
reason people don’t buy, followed byconcerns related to security, pricevolatility, and finally an uncertain
regulatory landscape globally.
Read more →Read more →KeyThemes &Findings

The network effect isreal. Globally, those whodon’t own bitcoin but
know someone who does
are much more likely to
say they plan on buying
bitcoin in the next year.
Read more →3 Bitcoin Stands Out Among Cryptocurrencies
People around the world areconsiderably more aware of bitcoin
than any other cryptocurrency.

Globally, millennials and baby
boomers have the highest levelsof bitcoin awareness.

Read more →Read more →1People See Promise in Bitcoin
for a More Equitable Economy

BLOCK, INC. 2022

← ALL KEY FINDINGS

5

People with below-averageincome more frequently noteusing bitcoin as a way to sendmoney and buy goods andservices than people withabove-average incomes.

The most common reason
people select as a goodreason to buy bitcoin is tomake money.

But if you break these reasons
down by income group, you
see that higher-income
respondents drive this trend,
selecting investment-related
reasons for buying bitcoin(diversifying investments,inflation hedge, potential to
make money) more frequently.

Reasons to Buy Bitcoin by Income Group% Who Would Buy Bitcoin by Reason and IncomeLower income

Investment reasons

Higher income

Utility reasons

60%

People
withLower
Incomes
Recognize
the Utilityof Bitcoin

50%

50%
40%

42%

41%

38%

39%
33%

30%

30%

27%
21%

20%

20%

17%

18%

16%

16%

10%
00%

Potential to
make money

Diversify myinvestment
portfolio

Protection
againstinflationMoretrustworthy thangovernmentbacked currency

Easy way tosend money
to others

To purchasegoods andservices

I don’t knowof anyreason tobuy bitcoin

← ALL KEY FINDINGSBLOCK, INC. 2022

This trend not only holds
between income groups but alsoon a country-by-country basis.

6Countries with lower percapita GDP and higher sharesof income from remittances
have greater rates of people
citing purchasing goods andservices and sending money as
good reasons to buy bitcoin.

Lower Income Nations See the Valueof Bitcoin as a Means of Transacting% Who would buy bitcoin because it’s an easy way to send money% Who would buy bitcoin to purchase goods and services

55%

55%

Nigeria50%% Who would buy bitcoin to purchase goods and services% Who would buy bitcoin because it's an easy way to send money

Remittances and the Appeal of Using
Bitcoin to Send Money to Others

China

45%40%

VietnamIndia

35%30%South Africa
U.S.
Canada

25%
20%
15%
10%

Argentina
Australia

U.K.

Japan0Germany
FranceItaly
1234

5% ofof Country'sCountry’sGDP
GDPfrom
fromRemittances
Remittances
%67

China

50%

VietnamNigeria
India
South Africa
Argentina

45%
40%
35%
30%
25%

Italy

FranceCanadaU.S.

U.K.

Australia

Germany

20%

Japan

15%
0%$0K

$10K $20K $30K $40K $50K $60K $70K
Per Capital
Capita GDPGDP← ALL KEY FINDINGSBLOCK, INC. 2022

Additionally, if we look at the shareof people who say that “protectionagainst inflation” is a good reason
to buy bitcoin, we see that it isstrongly correlated with inflation
rates by country, with Argentina
leading the pack.

7

Internal Cash App* research
about customers based in
the U.S. shows that those
who have ever sent money tosomeone outside the U.S. (viaother services) are much more
likely to see reasons to buy
cryptocurrency in generalthan are those who have notsent money abroad.

% Who would use bitcoin to protect against inflation

Close Relationship Between Inflation Rates andAttitudes Towards Bitcoin as Protection from It
50%

Argentina**

45%
40%

Nigeria

35%

India

30%

South Africa

25%
20%
15%
10%

VietnamGermany
China
Italy
Japan
0.0

U.K.
FranceU.S.
CanadaAustralia

5.0

10.0

15.0

20.0
Inflation rate 2021

25.0

30.0

35.0

40.0

45.0

BLOCK, INC. 2022

← ALL KEY FINDINGS

8

The gender divide in ownershipskews male mostly in theAmericas and disappears
when controlling for levelsof knowledge.

Interestingly, women also
gravitate towards utilitybased reasons more than meneven after controlling fordifferences in income. This
is not the case with reasons
more associated with making
money and investing.

In the EMEA and APAC regions, womenclaim to have expert levels of knowledge
at higher rates than men.

There IsNo Gender
DivideBetweenPeopleWhoBoth Own
Bitcoin andSee Themselves asExperts

47% of women see theprospect of buying goods andservices as a good reason tobuy bitcoin, compared withjust 34% of men. Similarly,
47% of women see theprospect of using bitcoin tosend money to others as agood reason to buy bitcoin,compared with 27% of men.

Knowledge by Gender and Region% By Level of Claimed Knowledge, Gender, and Region% Who would use bitcoin to protect against inflation

50%

40%

Women

I do not know
anything about
cryptocurrency
39%
33%

I only know it
exists, little else

35%

34%

34%

34%

30%
27%

20%

27%
25%

23%
22%

22%
20%
18%

18%
17%

14%

10%

Men

11%

13%

21%
20%

19%

15%

15%

11%

11%
8%

7%

4%

4%

0%

Americas

EMEA

APAC

I know thebasics about
cryptocurrency
I amknowledgeable
but not anexpert on thisI am the expert
on this among
my friends
and family

BLOCK, INC. 2022

← ALL KEY FINDINGS

9When respondents were asked
whether or not they agreed withthe statement that the bitcoin
community is a select group andnot inclusive of people like them,
their income, gender, and age
didn’t affect their response.

However, there is a lot ofvariation from country tocountry. People in South
Africa, Argentina, and China
do not feel excluded from thebitcoin community. Whereas
people in India, the UK, andAustralia do feel excluded.

Perceived Exclusivity of the Bitcoin
Community by Country% Who agree the BTC community is not inclusive of people like them0%
91-100%100%

47% 48%CanadaU.S.

52% 53% 39% 42%

France41%

U.K. Germany Italy

Japan91-100%

Perceptionof Bitcoin’s
Inclusivity
Varies byCountry

Globally, we see mild
evidence that there isa network effect withperceptions of inclusivity.
Just looking at those who
do not own bitcoin, 44%of those who know someone
who does own bitcoin say
the community is not inclusiveof people like them. Thiscompares with 52% of those
who don't know anyone whoowns bitcoin.
But the network effectseems to make a much bigger
difference to perceptions
in some regions more thanothers. There are starkdifferences in the Americas,
with only 33% of those whoknow someone who owns
bitcoin saying the community
is not inclusive of someone
like them, compared with
54% of those who don't know
someone who owns bitcoin.
There is a similarly big
difference in the EMEA region.

46%

Nigeria32%

Argentina

24%

South Africa

68%

India

44%

Vietnam

37%

China

48%Australia

2 Knowledge Feeds Optimismand Participation

BLOCK, INC. 2022

← ALL KEY FINDINGS

11People who have knowledge
about cryptocurrencies
overwhelmingly have a positive
outlook about bitcoin’s future.

The More
PeopleFeel They
Know
About
CryptoCurrency,
the More
Optimistic
They Are
About
Bitcoin’sFuture

There is no real genderdivide among those who areoptimistic vs. not. However,there’s a bit of an age divide,with millennials being themost optimistic and baby
boomers being the least, butit’s not drastic.

However, nearly a quarterof those who rate theirknowledge of cryptocurrencies
as “fair to expert” remain
skeptical of bitcoin’s future.

Knowledge and Optimism% of Respondents by Likelihood of Purchasing Bitcoin in the Next Year and Level of Knowledge

Very Likely to Purchase
50%
47%

Not Too Likely

Somewhat Likely

Not at All Likely

47%
41%

40%

37%
30%

26%
25%

20%

20%

20%
14%

10%

8%

8%
7%
00%

Limited or No Knowledge

I Know the Basics

Fair to Expert Knowledge← ALL KEY FINDINGSBLOCK, INC. 2022

12Nigeria, India, Vietnam, andArgentina have the highest rates
of optimism about bitcoin’s
future as well as the highest
claimed levels of cryptocurrency
knowledge more broadly.

Bitcoin’s Outlook by Country
Optimistic% Outlook by Country

100%

32%

23%

32%

13%
32%

80%

17%

32%

13%

36%

39%

31%

35%

29%

40%

Neither

Skeptical

37%

41%

51%

19%

60%

9%
60%

35%
58%

56%

47%

43%

12%
55%

40%

34%

38%

42%

49%

52%

40%
36%
29%

20%

28%

26%

25%

23%

22%

21%
11%

00%

Nigeria

India

VietnamArgentina

South
AfricaChina

UnitedStatesAustralia

Italy

UnitedKingdom

FranceGermany

CanadaJapan← ALL KEY FINDINGSBLOCK, INC. 2022

Additionally, higher-incomepeople are more optimistic
than lower-income people(46% vs. 37%), and this istrue in every region.

13

Interestingly, though, theoptimism gap between highand low-income respondents
is the smallest in theAmericas, and that optimism
gap disappears completely if
you remove those who say they
don’t know anything about
cryptocurrencies.

The power of word of mouth
also plays a role here. When
we look at non-bitcoin owners
who personally know someone
who owns bitcoin, 73% saythey are somewhat or very
likely to buy bitcoin in thenext 12 months, comparedwith just 37% of those who
do not know someone who
already owns it.

The Optimism Gap% Who are optimistic about the future of bitcoin

30%

33%

Lower income

Higher income

AMERICAS

39%

48%

Lower income

Higher income

APAC

31%

41%

Lower income

Higher income

EMEA

BLOCK, INC. 2022

← ALL KEY FINDINGS

14Again, we see not knowing
enough about bitcoin as far andaway the most common reason
not to buy it, but cybersecurity,
price volatility, and an uncertainregulatory outlook are also
commonly cited reasons.

If you look only at those
who both claim to have afair to expert amount ofcryptocurrency knowledge
and are skeptical about thefuture of bitcoin, the concernsthat rise to the top are “toomuch price volatility” and “anuncertain regulatory outlook.”

Reasons Selected for Not Buying Bitcoin% of Respondents by Reason

Lack ofBitcoin
Knowledge
Is the Top
ReasonPeopleDon’t
Buy It

32%

51%

Don’t know enough about it

Cybersecurity/
theft risks

22%

Don’t know
how to buy it

27%

Too expensive30%

29%

Too much
price volatility

18%

No practicaluse for it

Uncertain regulatory
outlook14%

The environmental
impact is too high14%

It’s too muchof a long term
investment

10%

Interested ina different
cryptocurrency

BLOCK, INC. 2022

← ALL KEY FINDINGS

15

Someone’s self-assessed
understanding of cryptocurrencies is the strongest
predictor of whether or notthey’re likely to buy bitcoinin the next year.

41% of those who say they
have fair to expert levels ofcryptocurrency knowledge
say they are very likely topurchase bitcoin in the next
12 months, compared with just
7.9% of those with limited tono knowledge of the topic.

However, when asked to selectthe correct definition of
cryptocurrencies, respondents
who identify as having fair
to expert levels of knowledge
choose the correct answer atsimilar rates as those who say
they don't know a lot about
cryptocurrencies.

Knowledge Levels and Intent to Buy% Who are likely to purchase bitcoin in the next 12 months

Level of
Knowledge
Impacts
Bitcoin
Purchasing

41%
Likely7.9%
LikelyFair to Expert Levels ofCryptocurrency Knowledge

Limited to No Knowledgeof Cryptocurrency

3 Bitcoin Stands Out
Among Cryptocurrencies

BLOCK, INC. 2022

← ALL KEY FINDINGS

17

Awareness of bitcoin ishigher than that of any othercryptocurrency globally —by far — with 88% of adults
surveyed having heard of
bitcoin specifically.

Globally, millennials andbaby boomers, in particular,
have the highest levels of
bitcoin awareness at 92.5%
and 89.2%, but all age
cohorts have relatively highawareness.

The cryptocurrency withthe next highest level ofawareness is Ethereum, adistant second at 43%.

Awareness of Cryptocurrencies% of Respondents Claiming to Have Heard of Various Cryptocurrencies

100%
88%

80%
~2x
awareness

60%
43%

Bitcoin Is
the Most
Well-Known
CryptoCurrency

40%
31%

29%

20%

16%

15%

13%

12%
7%
1%

00%

Bitcoin

Ethereum

Dogecoin Binance Coin

RippleTether

XRP

CardanoI have notheard of anyof thesebefore today

OtherBLOCK, INC. 2022

18Citations
The World Bank. (2022). Personal
remittances, received (% of GDP)
| Data. Retrieved April 7, 2022, fromhttps://data.worldbank.org/indicator/
BX.TRF.PWKR.DT.GD.ZS
The World Bank. (2022).
GDP per capita (current US$) | Data.
Retrieved April 7, 2022, fromhttps://data.worldbank.org/indicator/NY.GDP.PCAP.CD

The Block Bitcoin Survey was conductedby Wakefield Research among more than
9,500 nationally representative adults
aged 18+ in three regions: 2,375 in theAmericas, 4,360 in EMEA, and 2,860 in
APAC, including an oversample to ensure
100 bitcoin owners per region, between
January 10 and January 28, 2022, using anemail invitation and an online survey.
The data was weighted to ensure accurate and proportionalrepresentation of adults aged 18+ in each region, by country, and“globally” insofar as 14 countries can be considered global.
*Internal Cash App survey conducted in March of 2022.

Methodology

Block, Inc. is presenting this information for informational
purposes only and Block, Inc. is not intending to approve oradopt the information. Block, Inc. undertakes no obligation toupdate this memo, and the information contained herein may beupdated, amended, or superseded by subsequent documents ordisclosures, or may become outdated and inaccurate over time.
The information contained herein should not be construed as
investment advice.

International Monetary Fund. (2021).
Inflation rate, average consumer prices.
Retrieved April 7, 2022, fromhttps://www.imf.org/external/
datamapper/PCPIPCH@WEO/
GHA?year=2021**Argentina data from 2020
World Population Review. (2022).
Median Income by Country 2022.
Retrieved April 7, 2022, fromhttps://worldpopulationreview.com/
country-rankings/median-income-bycountry