The number of cryptocurrency investors since December 2017 has been monumental, however, not everything has been a bed of roses. A report from a London-based investment group has delivered a blow to the mainstream implementation of crypto by saying that over 20 million Brits simply do not understand crypto at all.
Although Britain is usually seen as a forward-thinking and pioneering part of the atlas, maybe the Brits are not as Crypto-savvy as they once thought. The report also pointed out some interesting figures regarding cryptocurrency investors.
Cryptocurrency investors struggle to make gains
The IW Capital group is a Mayfair-based SEM investment house who recently conducted research on cryptocurrency investment in the UK and found out some alarming things. The report has revealed that 38% of Brits do not understand or know anything about crypto.
As Bitcoin prices are now above USD 8,000, the crypto community is all smiles and happiness again after a couple of difficult months. However, the report from IW Capital has thrown some water on the flames.
Sharing their research, IW Capital has pointed out that only 5% of cryptocurrency investors have made financial gains from crypto. This is pretty stark news at a time when confidence in the markets is being restored and the industry clamors for more interest and investors.
According to the report, only 7% of Brits think that cryptocurrency is more valuable than stocks and shares, which is not so surprising in the grand scheme of things. It’s the cryptocurrency investors stats that are the most alarming. The report suggested that that the range of sentiment among Brits ranges from no confidence to lack of understanding of the essence of crypto and that the bitcoin bubble will burst in the not-to-distant-future.
3 million Brits invested in crypto
The research was based on 2,007 respondents, which is a fair number of people taking part. One thing the report did uncover is that the British crypto market is very robust, with crypto coins such as bitcoin becoming a booming trade.
It is reported that almost 3 million Brits have invested in crypto using an e-trading platform, but only 5% of that figure have taken any kind of cryptocurrency investor advice from a financial advisor or expert. Of that figure, it is believed that only 2.5 million of the number have “casually” invested in crypto without fully understanding the game.
Talking about the lack of understanding in regards to crypto, IW Capital said that “The data reveals that, fundamentally, Brits do not have enough information or knowledge on the topic of cryptocurrency. In fact, many have no knowledge about the subject whatsoever.”
IW Capital went on to add that “Despite a widespread dearth of knowledge surrounding this particular asset class, disconcertingly, 1 in 20 Brits – nearly 3 million – have invested in cryptocurrency without fully understanding it, with only 5 percent having taken advice from a financial adviser when investing in cryptocurrencies. Only 5 percent of those who have invested in cryptocurrency have made financial gains. 11.5 million have failed to make a financial gain when investing in a cryptocurrency.”
Looking at the big picture, it is hardly surprising that cryptocurrency investors in Britain and other parts of the world are purely speculating in this relatively new market sector. As time moves on, more people will get up to speed on crypto, so maybe this is just part of a rapidly-evolving industry that is growing a bit too big, a bit too fast!
I love everything about crypto. Simply can’t wait to see how blockchain technology changes our world for the better.