A Financial Conduct Authority (FCA) report suggests the UK is still a long way from a cryptocurrency revolution.
According to the report, only 3 percent of people in the UK have bought cryptocurrency. Furthermore, a shocking 73 percent still have no idea what crypto is, or how to define it. The group who are most likely to know something about it are men in the 20–44 age group.
Few know what crypto is
The FCA surveyed 2,132 respondents. When asked to explain cryptocurrency, 58 percent said they’d never heard of it, 10 percent didn’t know and 5 percent answered incorrectly. 27 percent correctly said it was a digital representation of value on the blockchain or DLT. Two percent thought it was a “body of private information about an individual, organisation or device that exists online, and another two percent though it was a website where people could communicate with each other. A sad one percent thought it was a means of raising money by selling numbered tickets for s prize draw.
The FCA also revealed that even those who had bought cryptocurrencies admitted they didn’t really understand them. Some 16% of British crypto buyers said they hadn’t done any research at all, and 4% only researched crypto after they had purchased it.
Low risk buyers
The study also showed which cryptocurrencies were most popular with the 3% of Britons who bought them. The most popular purchase is bitcoin, which accounts for 51 percent of buyers. Ethereum is second and Litecoin third. Most buyers spent less than £200 ($263) on their purchase, which means most haven’t risked a lot of capital.
Bear market sell off
However, the FCA admits that around 50% of UK crypto owners sold off their assets during the bear market, so that 3% is possibly even smaller now. It seems the British are quite sceptical about crypto as well: only 1% of those surveyed who don’t already own crypto said they might buy it in the future.
Report contradicts more positive studies
However, do bear in mind that the FCA report contradicts earlier studies, such as a UK YouGov report which claimed 93 percent of Brits are aware of bitcoin, and a further survey revealed that a third of Londoners planned on purchasing crypto.