Navigating Bitcoin Financial Services: Insights into User Behavior and Preferences
This paper investigates user preferences and behaviors related to Bitcoin financial services, focusing on custodial and non-custodial options, private key ownership, and the use of Bitcoin as collateral. Data was gathered through an online survey and in-person responses at the Plan B Forum in Lugano, targeting Bitcoin enthusiasts to understand community-specific trends.
Methodology
The survey collected 200 responses from participants selected randomly within the Bitcoin community, ensuring representation while acknowledging potential biases. Questions covered demographic data, familiarity with custodial and non-custodial services, and attitudes toward collateral, interest rates, and rehypothecation.
Key Findings
Demographics
Respondents were primarily aged 18-45 (75.6%) and predominantly from Europe (67.8%).
Bitcoin Ownership and Familiarity
96.1% of participants had owned Bitcoin.
99.4% were familiar with custodial and non-custodial ownership concepts.
Preference for Financial Services
78.1% preferred non-custodial services.
11.7% preferred custodial services.
10.2% had no preference.
66.3% considered exclusive access to private keys essential.
60.5% favored Bitcoin lending platforms over traditional banks.
Willingness to Use Bitcoin as Collateral
83.9% indicated they would use Bitcoin as collateral for loans, reflecting trust in its role as a financial asset.
Interest Rate Trade-Offs and Rehypothecation
81% preferred avoiding rehypothecation, even at a higher interest rate (11%).
19% opted for an 8% interest rate with rehypothecation.
78% opted for higher interest rates (+3%) to retain non-custodial control of their collateral.
Implications for Financial Services
These findings highlight a strong preference for non-custodial, user-controlled solutions that align with Bitcoin’s core principles of decentralization and transparency. Trust in platforms is critical, with users valuing asset security over cost savings.
Service providers can meet these expectations by integrating features like multisig setups, transparent practices, and protections against rehypothecation. Platforms such as Debifi, with its non-custodial model and innovative 3-of-4 multisig framework, address these user demands while emphasizing security and user autonomy.
Conclusion
The study underscores a significant shift in user expectations, away from centralized models toward decentralized, trustless financial systems. Bitcoin users demonstrate a willingness to trade higher costs for control and transparency, reflecting a mature understanding of financial risks and rewards. By aligning services with these preferences, providers can foster trust, loyalty, and adoption within the Bitcoin community.
This research serves as a roadmap for designing user-focused Bitcoin financial services that respect decentralization and promote financial sovereignty.