Determining the popularity of cryptocurrencies is very difficult. Numbers will differ greatly from region to region. According to the FCA, roughly 1.6 million Britons bought crypto assets as one point or another.
Bitcoin Becomes More Popular, FCA Claims
Surveys like these are designed to explain the market sentiment toward crypto assets in the United Kingdom. Last year’s survey showed that nearly 1.5 million Britons had potentially owned Bitcoin or altcoins at one point. That in itself was a pretty significant figure, given how “quiet” the UK is on this front.
In this year’s survey by the FCA, the numbers look even better. It is believed that as many as 2.6 million UK consumers have dabbled in crypto assets to date. This represents a near 100% increase in the span of one year. These figures are based on research conducted among 2,681 consumers, however, thus the real tally may differ slightly.
Following these results, the question becomes what the driving factor may have been. Very little has changed in the United Kingdom over the past year.
The Brexit has entered a new stage, which may explain a thing or two. Combined with the COVID-19 pandemic and its impact on personal finances, the choice for Bitcoin may have become a lot more appealing.
FCA Interim Executive Director of Strategy and Competition Sheldon Mills adds:
“This FCA report reveals the increasing popularity of cryptoassets among the UK consumer population and underlines the importance of our work to gain a deeper understanding of this market and how people interact with these assets.
“Cryptoassets present risks and opportunities for consumers and we hope these insights will help inform the policy debate in the UK and internationally as the use of these assets continue to grow.”
Looking at the study, it also claims how 1.9 million consumers still hold their crypto assets. Bitcoin is the most popular option, followed by XRP and Ethereum.
Nearly 50% of the holders allegedly own over $275 in assets. It is not a high average, yet it goes to show that these investments can become more substantial in the years to come.
Education Creates Holders Instead of Speculators
Making money with cryptocurrencies is often done by actively trading them back and forth. This can be done through many platforms, including the various DEX offerings on the market. Those who frequently trade crypto are also at risk of losing money due to market volatility.
The FCA survey indicates that most of the crypto asset holders are knowledgeable about Bitcoin and altcoins. This is also why they hold their coins, instead of flipping them. Cost-averaging is crucial when one wants to hold these assets. With the help of companies such as CoinCorner, that process becomes a lot easier.
Speaking of CoinCorner, this company may help improve crypto adoption in the United Kingdom. Its recently launched Bitcoin cashback service has great potential.
Shopping online and earning some money back while doing so appeals to a lot of people. When that cashback is paid out in Bitcoin, a very interesting situation is created.
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