The Financial Conduct Authority (FCA) in the UK reported that 1.9 million adults own cryptocurrencies, representing 3.86% of the general population. The regulator also noted that 75% of them hold crypto worth less than £1,000, approximately $1,230.
High technical knowledge base
The FCA revealed that most of the crypto owners in the nation had a considerable technical grasp of cryptocurrencies, such as their high volatility and the underlying blockchain technology.
The financial watchdog also acknowledged that citizens holding cryptocurrencies rose to 2.6 million from 1.5 million recorded in 2019. Non-UK based crypto exchanges have played an instrumental role in elevating ownership.
Cryptocurrency awareness has also been on the rise in the United Kingdom because it rose to 73% from 42% recorded last year. This trend is attributed to increased media coverage as crypto adverts are given more airplay. For instance, 16% of current and previous owners were swayed by an advertisement.
Nearly 300,000 crypto owners believe that their cryptocurrencies have consumer protections, whereas this is not the case, and the regulator believes this jeopardizes their financial security.
More of a gamble
The FCA availed some interesting insights that cryptocurrencies were popular among UK citizens as they viewed them as a gamble that could make or lose money. This shows the risk tolerance of these consumers.
According to the report, “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 as one of the main reasons. Only 15% stated that they were ‘expecting to make money quickly.”
Bitcoin emerged to be the most popular cryptocurrency at 78%, followed by Libra at 22%, even though it has not yet been launched.
Russia’s blockchain e-voting platform intended for proposed Constitutional amendments recently suffered a node attack. If the proposal gets the green-light, the serving President Vladimir Putin will extend his term until 2036.