Only a small fraction of the population of the United Kingdom has bought Bitcoin or any of the hundreds of other cryptocurrencies, according to 2 surveys specially commissioned for the UK financial regulator, the Financial Conduct Authority (FCA), of which our portal we have a significant number of news.
These results of the report show that even among the 3% of consumers who have purchased some type of cryptocurrency, there is still a high degree of ignorance about what are the active crypto and how they work.
The two consumer surveys analyze the attitudes and motivations of consumers towards digital currencies.
These numbers are not surprising at all, given the relatively small amount that your Hodls have actually acquired in crypts. Researchers have estimated that 73% of consumers have no idea that it is an active crypto and much less can define it, and the same case is for blockchain network technology, Blockchain, which is the technology inherent to cryptocurrencies.
In addition, the regulatory agency of the United Kingdom, the FCA found, in line with other surveys conducted in this territory, that the profile of crypto buyers and those with more knowledge of cryptographic technology tend to be relatively young and masculine, making known a more consistent number between the ages of 20 and 44 years.
The first survey was an in-depth study of 31 crypto consumers who have acquired the largest cryptocurrency of all, Bitcoin.
It was discovered that one of the main motivations of purchase was the “need to get rich quickly” and the famous FOMO, “the fear of missing it” in English “Fear of Mising Out”, or the fear of not being inside what is “Fashion” currently.
The second survey carried out by the regulator was aimed at a much larger number of people, was conducted by private survey company Kantar TNS and had 2,132 face-to-face interviews.
Surprisingly, in a sign that the crypto bubble lived at the end of 2017 is staying in the past and is currently really deflated.
This second survey reveals that only 7% of people who have not purchased any type of active crypto seriously consider doing so in the near future, or in the medium term.
Among the 31 buyers that made up the sample of the first survey, there are several individuals.
Ashton, 26, musician of a band that performs at weddings, who lives in a small town in the Midlands. He told the researchers that:
“I ASSUME THAT I DO NOT HAVE THE CAREER THAT MY PARENTS WANTED, BUT I AM LAIDLY. MY PRIORITY IS ENJOYING LIFE. I JUST WANT TO MAKE ME RICH AND REMOVE ME.”
Another buyer, Karina, 31, a police officer in London, felt the fear of FOMO:
“I REMEMBER THAT I READ THE MEDIA ONLINE, WHAT I BASICLY SAYED: JUMP ON THE BOAT NOW OR NOT AT ALL IN THE FUTURE.”
She bought 1,500 pounds sterling, or approximating 2,000 dollars in Bitcoin, Ethereum and Litecoin in August 2017, blaming media messages for “getting on the ship now or not at all.”
Bitcoin, the oldest and most valuable of virtual currencies, was its most popular purchase, followed by the Ether token of the Ethereum Blockchain platform.
MOST OF THE NEW ACTIVE CRIPT OWNERS WOULD HAVE MADE THE PURCHASE OF THEIR AVAILABLE INCOME, NOT THEIR SAVINGS.
The FCA studies found that the level of understanding about cryptography was extremely low, even among those who had purchased some type of active crypto.
Given that information, the regulator thought that the level of damage caused to the finances of individuals when the bubble exploded could have been exaggerated by the same “hype”, enthusiasm that caused the price of active crypto to reach its historic maximum in the month of December of the year 2017.
“THOSE WHO USE CREDIT CARDS TO BUY CRIPTOMONEDAS LUCKY LOOK LIKE TO HAVE BEEN A MINORITY”.
This impact could have been minimal because most crypto Exchanges large or famous did not accept credit cards at that time, so many new users could not acquire it by these means.
Other findings of the survey showed that only 8% of buyers have done a “deep investigation” before buying and 16% have not made any, and has become crypto user just for being it.
The number that seems most incredible, one in three buyers in the UK said they had not verified the valuation of their participation from the time of purchase.
There is a high proportion of “hodlers” in the cryptographic world. These are the buyers who see crypto as a long-term investment. 40% of crypto owners plan to maintain their tokens for at least three years.
Christopher Woolard, executive director of strategy and competence of the FCA, in a statement on said research said:
“THE RESULTS SUGGEST THAT, ALTHOUGH MANY CONSUMERS DO NOT UNDERSTAND WHAT IS AN ACTIVE CRYPT, THE MAJORITY OF THE POPULATION DOES NOT BUY THEM OR USE THEM CURRENTLY.”
Among this number of buyers, 23% obtained their online media information, with traditional media in 22% of cases, friends and family 16%, social networks 15% and online advertising ads 10%.
Interestingly, and perhaps expected, for those in the range between 16 and 24 years, social networks were the most influential information source of information
The lack of knowledge and the absence of regulation means that consumers can be victims of scammers, as we have expressed on multiple occasions.
An online ad that claims to belong to the Real Madrid football team, or Barcelona, which invites to invest in a fictitious cryptocurrency is a notorious example, or even world-class athletes have fallen into scams, lending themselves to be the face of advertising of delinquent startups.
However, with the price of cryptocurrencies falling more than 80% and even more from their historical highs, interest among consumers has decreased, even when Facebook and investment bank JP Morgan have announced the creation of their own cryptocurrencies.
Last year, the FCA, the Bank of England and HM Revenue & Customs formed the UK Cryptoassets Taskforce, as reported on our website, which detailed in a report in October with a view to the FCA taking responsibility for regulating the nascent sector.
The FCA is currently conducting a consultation process, which closes for consumer and industry presentations on April 5, 2019.
The Financial Regulator of the United Kingdom, the Financial Conduct Authority (FCA), has warned consumers that cryptocurrencies are not regulated, are very volatile and risky, and are invested in so-called initial offers of currencies (ICO) where Startups of Blockchain sell tokens to raise funds are even riskier.
THEREFORE, WE RECOMMEND ALL OUR READERS, WHO WANT TO ENTER THE WORLD OF CRYPTONS, CONTACT EXPERTS IN THE TOPIC, SO THAT THEY ARE NOT VICTIM OF ANY ILLEGAL ACT, OR BE SCAMED, BUT AT THEIR TIME, WE RECOMMEND TO THAT MORE EXPERIENCED READERS GROUP THAT NEVER STOOLS TO BE INFORMED, AND ALWAYS THINK “IF IT IS VERY GOOD TO BE TRUE, IT IS WHY IT IS FALSE”.