Brits remain in the dark about cryptocurrency investment
New research suggests that Brits remain largely in the dark about digital asset investment, with nearly 40% of the UK population having no understanding at all about cryptocurrencies.
IW Capital commissioned research using more than 2,000 respondents to explore the UK’s attitudes towards cryptocurrency as an investment opportunity compared with more traditional and other alternative investments.
Significantly, among those with some knowledge of the digital asset class, a third believe that cryptocurrencies are a bubble that will eventually burst, while just 7% of Brits believe cryptocurrency investment is more valuable than traditional stocks and shares investment.
When compared to the riskier end of the traditional investment spectrum, 21% preferred to invest in small and medium sized enterprizes (SMEs), with 27% of those polled believing that SMEs were a more stable investment than cryptocurrencies.
Gains are hard won
The data reveals that Brits do not have enough information or knowledge about cryptocurrencies, said Luke Davis, Founder, and CEO of IW Capital.
Despite this dearth of knowledge, one in 20 Brits – nearly 3 million people – are reckoned to have invested in cryptocurrency, and of these only 5% have made financial gains.
The research suggested that some 11.5 million UK investors in cryptocurrencies have failed to make any profits from their holdings or transactions.
Lack of advice
Davis added that it was not surprising to see so much confusion around the topic of cryptocurrencies given the lack of financial advice on the sector.
“To see that investments have been made without the proper financial advice and a lack of facts is very concerning,” he said.
“With so many high-profile celebrities and business people coming out and supporting cryptocurrency investments, I believe that we will continue to see confusion and a lack of information surrounding them.”