Nice research – An estimated 2.6 million UK consumers have bought cryptoassets at some point, new FCA research reveals.

It is nice, since it comes from independent organization. Some highlights from the research:

The FCA commissioned research to gain insight into the size of the market and identify
potential harm. Through a nationally representative survey of 2,132 UK consumers and 31 in-depth interviews, this research provided invaluable insights into the size of the market and where potential harms could be found. It concluded that the size of the market was relatively small with 3% of consumers having ever bought cryptoassets, spending on average £200. It also showed that awareness of cryptoassets among the general population was low.

The FCA chose to use the term ‘cryptocurrency’ throughout the research. This
term is more widely used in public domain than the broader ‘cryptoasset’ term it tend to prefer. The FCA also use ‘exchange’ to represent ‘cryptoasset trading platforms’, given
‘exchange’ is widely understood and used by consumers.

Most cryptocurrency owners appear to understand the lack of regulatory protections and demonstrate some awareness of the technology underpinning cryptocurrencies. Also, they acknowledge that prices are highly volatile and may fall.

Consumers appear increasingly aware of cryptocurrencies, as 27% had never heard of
cryptocurrencies this year, compared with 58% in our survey last year. The number of
consumers aware of cryptocurrencies has significantly increased. A possible explanation
for this increase in awareness may relate to the increased media presence. Bitcoin was
the most recognised cryptocurrency and, whilst Libra does not yet exist as a  cryptocurrency, 22% had heard of Libra. The list of cryptocurrencies included unlaunched ones (Libra), to capture awareness of potential cryptocurrency players.

When asked why they bought cryptocurrencies, 47% said they bought cryptocurrencies
‘as a gamble that could make or lose money’ compared with 31% in the 2019 consumer
research (noting this year’s survey was online whilst last years was face to face) as one
of the main reasons.

More people are first hearing about cryptocurrencies through the media, with ‘traditional media’ being the place where people are most likely to have first heard about cryptocurrencies.

Over 25% use cryptocurrencies to purchase goods and services, nearly half have never done anything with them, suggesting people purchase them with the hope of making a return.
In general, cryptocurrency holders expect to hold them for long periods of time.

According to the research, we can conclude that Cryptoassets, at the moment, are more like gold or commodity, rather than a currency (place to store value rather than a currency like EUR/GBP/USD).

 

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