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).

 

Google/Facebook is it really Rockefeller/Carnegie alike?

Time and Google/Facebook good faith will tell if our digital platforms are Rockefeller/Carnegie alike.

According to the Australian Competition & Consumer Commission report, there are issues to address and problems to be solved. Google/Facebook may need to read the report carefully, in order to protect their good business.

Google and Facebook are doing good service to all of us, but questions should be asked, and concerns should be resolved, since there is no perfection in life.

We are the guardians of our privacy, and it is up to us to determine how it will be used.

The data from the report can assist all of us in the future, for example:

  • The activities most commonly reported by digital platforms users as being undertaken on a daily basis were looking for or reading online news (48%), streaming content (39%), watching or listening to news (31%) or creating and sharing content (31%).
  • People who access news via digital platforms are also likely to access news in other ways.
  • A little under three-quarters (72%) agreed or strongly agreed that for some digital platforms, a requirement of usage was allowing the platform to use any content uploaded or shared. There were differences in views of how Digital Platforms may use their information. In particular, less than half of digital platforms users agreed that:
    A digital platform having a privacy policy meant it would not share a user’s information with others (43% disagreed or strongly disagreed with the statement)
    Mobile and tablet apps would only ask permission to access things on a user’s devices that were required for the app to work (43% disagreed or strongly disagreed with the statement).

 

It seems that we will judge if the technology provided is good or bad. Even the best ice-cream shop has complaints, and when it comes to digital platforms there are many interests involve. Therefore, this case is tricky, and maybe that’s why decentralize and non-censorship system/s will gather more attraction in the future.