Recent research published by the United Kingdom’s Financial Conduct Authority (FCA), confirms an increased uptake of cryptocurrencies as an investment option by a growing number of Britons.
The number of UK adults holding cryptocurrencies increased from 1.9 million in the past year to 2.3 million, thanks to the meteoric rise in market prices over the past twelve months. Additionally, the number of adults that have heard about cryptocurrencies increased from 73% to 78% during the past year.
The FCA research shared further insights into the motive behind the increased allocation of investments to cryptocurrencies. 38% of surveyed investors viewed crypto investment as a gamble, although the figure is lower than the 47% reported last year. Also, 71% of investors were able to identify the accurate definition of cryptocurrencies from a list of statements provided during the survey.
Following a stellar year, the FCA reckoned that more than half of crypto investors (51%) had a positive experience and are more likely to buy more. At its peak, the crypto market hit a market cap near £1.8 trillion and the leading cryptocurrency, Bitcoin reached £47,095.
On the other hand, the percentage of investors who had a bad experience dropped from 15% to 11% in the past year.
Another noteworthy stat is that only a few investors (12%) still believe that their crypto investments were protected by the UK Financial Services Compensation Scheme (FSCS) and the Financial Ombudsman Service. The majority of investors understand that they cannot rely on these provisions from the government to recover losses made from investing in cryptocurrencies.
Regarding the results from the latest research, FCA’s Executive Directive Sheldon Mills acknowledged the “increased interest in crypto assets among UK customers'' and the fact that the market has continued to grow, and some investors have benefitted as prices have risen.”
He added the now-familiar warning that 'if consumers invest in these types of products [cryptocurrencies], they should be prepared to lose all their money.'
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