According to a recent Findoutnow poll, the British prefer crypto over stocks. At the same time, more than 70% of surveyed British crypto investors have benefited financially. In addition, most of them are aware of the risks associated with hacks and high volatility of cryptocurrencies. At the same time, some users understand the principles of blockchain operation. Thus, the number of people knowledgeable about the crypto industry is growing every year.
The survey was conducted among 1269 respondents. A large-scale sociological survey revealed the interest of the population in digital assets. So, 7% of respondents noted that they bought cryptocurrency within the last year, compared to 5% who invested in stocks. Note that the majority of crypto investors are men and younger than 35 years old. The number of Gen Z investors and millennials, who trade or own cryptocurrencies is growing from year to year.
Laith Khalaf, financial analyst at AJ Bell, commented that the results contradicted conventional wisdom:
“When more people buy crypto than invest in the stock market, ISA, you have to conclude that the world is crazy about cryptocurrencies”, he said.
Earlier, large American financial group Charles Schwab also conducted a similar survey. It found that young British investors are twice as likely to buy cryptocurrencies like Bitcoin than stocks.
Crypto market awareness is growing
Along with the growth of owners of virtual assets, so does the awareness of the crypto market. Compared to last year, the number of people who have heard about cryptocurrencies has increased from 42% to 73%. The number of active traders in the country is also growing.
In general, financial activity is growing, as people are interested in acquiring finance that is alternative to the traditional market.
Regulators have concluded that the widespread circulation of ads related to the crypto industry can influence users’ decisions to purchase digital assets.
However, most Britons consider the purchase of crypto assets as a gamble. In which they can both increase their funds and lose them, fully aware of all the risks of the cryptocurrency market.
As more young people buy speculative products, there are concerns that these investors aren’t diversifying their portfolios enough to mitigate risks in the event of a fall in cryptocurrency markets.
Some studies have shown that seven out of 10 young investors don’t know how to protect themselves from losses in the current financial environment. Regulators note that it’s important to remember that these are speculative assets that don’t fit into traditional asset allocation models. While the projected return is tempting, investors should be aware that it is just as sensitive to supply and demand, but not necessarily intrinsic value.
Thus, the UK Financial Conduct Authority (FCA) announced that it is working with the country’s government and the Bank of England to protect users from the risks associated with the crypto industry. While not interfering with the development of the latest technologies.
Recall that last summer, the regulator presented a new plan to combat economic crimes for 2019-2022. It should ensure that cryptocurrency companies comply with the AML / CFT rules.