Too Early For Bitcoin: Over ⅔ of UK Consumers Are Not Sure What Crypto Is
Electronic payments is not just a future, it is a reality now. Different services provide new features every day to make e-payments even more comfortable for their users. With the development of the e-payment platforms, a new type of currency has rosen - cryptocurrency. However, is crypto so widely used as crypto-related people think? The answer is no. Most people do not have any idea what crypto is and how to use it. The recent survey shows that over two-thirds of the UK consumers cannot define cryptocurrency. Even though London, being a global financial center, promotes understanding of crypto, the actual use in business remains very low. Only 2% of customers bought crypto for more than £200. The research of the UK’s Financial Conduct Authority (FCA) includes two reports made by Revealing Reality and Kantar TNS. The former has asked 31 crypto asset consumers on how people understand crypto, what motivates them to buy it, their sources of information, while the latter report surveyed 2,132 UK consumers “regarding their awareness, understanding and purchasing habits related to cryptoassets.” The research finds the following points:
  1. A lot of consumers consider crypto as a way to earn money faster. They are mostly motivated by social media posts.
  2. Many people are not quite sure what they purchase. They think cryptocurrency is a tangible asset due to terms like “coin”, “mine”.
  3. People do not conduct any research, develop strategy on crypto before purchasing it. Some of them understand the risk of such investments, but, according to them, “that risk is part of the attraction.”
  4. 73% of British consumers are unable to define cryptocurrency. The term is mostly recognized by men aged 20-44 years old and middle class and upper middle class.
The FCA’s strategy and competition executive director, Christopher Woolard, commented:
“The results suggest that although crypto assets may not be well understood by many consumers, the vast majority don’t buy or use them currently…Whilst the research suggests some harm to individual crypto asset users, it does not suggest a large impact on wider society.”
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