Labour perception bias: Bitcoin recovery phrases

Labour perception bias: Bitcoin recovery phrases
Bitcoin_Maximalist
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Labour perception bias: Bitcoin recovery phrases

How the labour perception bias may help people understand and appreciate the value of their bitcoin recovery phrase

The labour perception bias states that people tend to trust and value things more when they see the underlying work that goes into it. (1)

Bitcoin recovery phrases, also known as seed phrases or mnemonics, are a crucial aspect of securing one’s bitcoin. They are a set of words that are used to generate a private key, which in turn is used to access and control one’s bitcoin. It’s important that users value the importance of their recovery phrases because if they lose access to their recovery phrase, they may permanently lose access to their bitcoin.

The labour perception bias can be applied to bitcoin recovery phrases in order to help users understand their value and importance and decrease the likelihood they make errors when writing down and storing them.

Applying the labour perception bias

Many Bitcoin apps and tools generate a recovery phrase for the user with the click of a button. This prevents the user from experiencing the labour perception bias, which can result in them putting less importance on their newly created recovery phrase. This can lead to users improperly writing down and storing their recovery phrase and potentially losing their bitcoin for good.

No labour perception bias = less importance put on the action

A way to apply the labour perception bias to the generation of bitcoin recovery phrases is to visually show users a state after they click create that represents the recovery phrase is being created.

This state can be something as simple as a loading animation but making it more unique or taking the opportunity to educate the user about something can also a good idea.

Labour perception bias = more importance put on the action

To some, an extra loading step may seem like unnecessary friction. However, for something as important as a recovery phrase, reassurance that something is happening is key.

People dislike waiting in general, but if your users have high expectations (e.g., money transaction, migration, analysis, reporting), they become skeptical if the waiting time is too short. That’s why displaying a labor screen right after a key action can improve your UX. (2)

It’s also been shown that well designed labour perception bias can increase an apps perceived value by up to 15% (3).

Conclusion

The labour perception bias can be applied to the generation of Bitcoin recovery phrases, which are crucial for securing one’s bitcoin, to help users understand their importance and decrease errors made in writing and storing them.

This can be done by visually showing users a state that represents the recovery phrase is being generated, and it can increase the perceived value of the app and action being taken.