FCA estimates 2.3 million Brits are invested in crypto

By Samuel Indyk – The UK’s Financial Conduct Authority has published a consumer research paper into cryptocurrencies which estimates a total of 2.3mln Britons hold cryptocurrency in some form, with the median holding up from £260 to £300.

The regulator said attitudes towards cryptocurrencies have shifted; as cryptocurrencies appear to have become more normalised, fewer crypto users regard them as a gamble (38%, down from 47% in their previous survey).

“That is a dangerous financial attitude to take, given the volatility of cryptocurrencies and tokens,” said Hargreaves Lansdown (LON:) Senior Investment and Markets Analyst Susannah Streeter.

What may be even more worrying for the FCA is the relaxed attitude of investors to their warnings. Only one in ten of those surveyed who had heard of cryptocurrencies said they were aware of the consumer warnings on the FCA website. Of those, 44% said the warnings had no effect on their plans to keep or purchase cryptocurrencies.

“It’s no surprise that the FCA has used the publication of this research as an opportunity to issue a fresh warning that people risk losing all their money if they trade in crypto assets,” Streeter added.

The survey also showed that 14% of cryptocurrency buyers had borrowed to buy these digital assets.

“The fact that 14% of crypto buyers have borrowed to invest is simply terrifying,” said AJ Bell Financial Analyst Laith Khalaf. “The extreme volatility and uncertain long-term outlook for crypto means holdings can be wiped out, leaving borrowers with nothing but their debt as a memento.”

Read More   Top 5 Cryptocurrencies to Watch This Week: BTC, XTZ, ADA, LINK, ETC - Cointelegraph

The survey showed that some investors were driven by ‘fear of missing out’ and around 20% were buying cryptocurrencies instead of other more stable assets.

Unsurprisingly, was the most popular holding among those who had invested in cryptocurrencies.

The survey found that two thirds of users hold Bitcoin, 35% hold , 21% hold , 18% hold and 15% hold .

The research report comes amid a mixed picture for cryptocurrencies. Institutional adoption, which looked like it was picking up pace at the start of the year, has slowed after Tesla (NASDAQ:) said they would stop accepting Bitcoin due to environmental concerns.

Fears over increased global regulation in the space continue to hold prices down with China cracking down on crypto mining activities and other countries potentially following suit.

On the other hand, El Salvador has just passed regulation making Bitcoin legal tender in the country and many large companies and governments are still making moves in the cryptocurrency space.

It’s clear that cryptocurrencies are here to stay but the question is what coins will survive and in what role will they have in the financial ecosystem.

At 13:53BST, Bitcoin was trading around $38,800, broadly unchanged over the last 24 hours.  

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Read More   Was DeFi the Best Option for Cryptocurrency Investing in 2019? - BeInCrypto

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.


Leave a Reply

This website uses cookies. By continuing to use this site, you accept our use of cookies.