Crypto Still A Mystery For UK Consumers

Girish Chugh

March 8, 2019 3:33 pm

Crypto Still A Mystery For UK Consumers
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United Kingdom’s Financial Watchdog, the Financial Conduct Authority (FCA) recently published two reports, highlighting data about consumer awareness, understanding, and attitudes about crypto assets. The first report documents research firm Revealing Reality’s interviews with 31 crypto-asset consumers, out of which 17 were short-listed for follow-up rounds. Whereas, the second one includes a survey by Kantar TNS of 2,132 UK consumers who were asked basic questions about cryptocurrency.

The FCA has made crucial observations based on these two reports. The first specifies that most UK consumers consider crypto-assets as a mode “to get rich quick.” It’s perceived “as a shortcut to easy money and wealth.” The individuals with such ideas were mainly influenced by others through social media.

The second key observation indicates that many people don’t understand how cryptocurrency trading works. For instance, several respondents expressed their desire to purchase a whole coin, but were unaware of buying the parts of crypto. They also thought that cryptocurrencies are tangible assets as it is always represented with physical images (mining and coins).

While the third observation includes responses from interviewees about the risks associated with crypto investments. People carried out little to no research about crypto-assets prior to purchase.

However, keeping all the misunderstandings about the crypto aside, the agency estimates that only 3 percent of respondents to the second study had invested in cryptocurrency, and 73 percent were unaware about it. The FCA also mentioned that most consumers who didn’t participate in crypto investment intend to keep it that way.

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