Despite the seemingly endless supply of stories of investors making millions of dollars through cryptocurrencies, a recent report from a U.K.-based news source seems to tell a different story.
As per an article from Express U.K, IW Capital, a legacy markets investment house based in London, recently researched information highlighting the state of cryptocurrency investors in the Western European powerhouse. The data, which was divulged exclusively to Express U.K. reporters, paints a picture that doesn’t seem to be too positive for this nascent industry.
One-third of all of the survey’s respondents noted that they believe that the so-called “Bitcoin bubble” will burst very shortly. Another key figure which was found out in the report was that 38% of the 2,007 surveyed, likely part of the aforementioned group of naysayers, claim to not understand the slightest bit about cryptocurrencies, and the technology behind them. This figure brings up the issue of education, and how many experts note that widespread adoption cannot be achieved without education regarding crypto first.
As IW Capital alludes to, there is a large issue with the levels of knowledge seen in the industry. The report notes:
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. 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.
The report later added that a wide majority of investors in the U.K. see cryptocurrency as an “inferior” investment, while directly comparing this new breed of assets to something like a stock or a government-issued bond. In accordance with the statistics given by IW Capital, only 7% of those involved in the survey see more value in cryptocurrencies in comparison with the investment opportunities offered in traditional markets. It is likely that this aversion towards crypto assets is the direct result of only a small portion of U.K.-based cryptocurrency investors turning a financial profit, just a measly 5% in fact.
However, it is important to note that over 2.5 million Brits have “casually invested” into this asset class, driving a figure that was likely higher before, straight into the ground.
While the 2,007 surveyed may not be fully representative of the entirety of the U.K. population, it is likely that the unfortunate pattern of losses and misunderstanding is prevalent all crypto investors in the country.
These Figures Are “Shocking, But Not Surprising”
Luke Davis, the CEO of the firm conducting the survey, gave Express a statement regarding the statistics, noting:
It is shocking, but not surprising, to see so much confusion around the topic of cryptocurrency. I do not believe this is a reflection of UK investors’ risk profile, as a positive appetite for alternative finance remains, but to see that investments have been made without proper financial advice and a lack of facts and education is very concerning.
