Uncertainty grip investment realm as risk-averse players sidestep cryptocurrencies
Crypto ownership among Brits is on a downward spiral as more folks become aware of the risks and potential losses associated with digital currencies.
In 2022, around 2.3 million adults, or 4.3%, owned cryptocurrencies. However, this figure dipped to 1.9 million, or 3.8%, in May last year – representing a decrease in crypto enthusiasts by nearly a fifth. This significant drop was primarily driven by a sharp decline in the number of male and younger adult cryptocurrency holders.
Interestingly, men still outnumber women when it comes to crypto ownership, with males being more than three times as likely to own digital currencies. The decline coincided with increased awareness of the perils of putting money into crypto assets. According to the Financial Conduct Authority (FCA), an alarming 75% of crypto holders accepted the possibility that they might lose all their money, up from 65% in the previous year.
It appears that the market for crypto may not be attracting new investors as previously believed. The FCA's findings suggest that crypto is mainly held by those who invested in the past, with only one in ten holding it having invested in the last year. The survey, which took place before Donald Trump's return to power, also predated a renewed surge in demand for cryptocurrencies.
With regulation tightening its grip, restrictions on using credit for crypto purchases, and increased awareness of the risks involved, it's no wonder that Brits are showing less appetite for cryptocurrencies. If you're still considering dipping your toes into the crypto world, make sure you're well-informed and prepared for possible losses.
Sources:
- Crypto adoption rising in UK, survey finds
- UKBitcoinWorld
- FCA urges caution on cryptocurrency investments
- FCA warning: Be prepared to lose all your money with crypto assets
- FCAset to ban retail investors from buying cryptocurrencies using credit cards
In light of the increasing awareness of the risks associated with digital currencies, some individuals might be reconsidering their approach towards investing in stocks and other finance-related assets, such as personal-finance choices. As cryptocurrency ownership among Brits continues to decline, it seems that the crypto market may not be as attractive to new investors as previously expected.
