FCA has published and annual detailed report devoted to crypto and it raises the curtain on why people buy crypto.
Statistics indicating crypto industry expansion. Not so long ago Bitcoin and other cryptos, being stuck somewhere between the EU referendum and the corona pandemic, have become of the global burning issues. In the context of rapid inflation growth many users have come alive fearing they could miss the chance of getting fats and high profit from crypto deals since its only way out was up and so on.
You might have already heard some casual talks on buying BTC, Ripple or ETH, for example. It seemed like all people, young and old, lived with the expectation to turn hundreds and thousands of their fiat money into something more significant.
A lot of them then had to keep their fingers crossed: BTC price failed from its peak of $20K in December, 2017 to $3K, while some investors saw their crypto exchanges disappearing and felt they were cheated. Some lucky men were possibly involved in trading when the price was law and the unknown industry promised high profit.
Let us move to the present time, and although cryptos remain to be a risky asset, interest to them is still high, and the ways to buy digital currencies have become much simpler. Those who managed to buy BTC when it costed $3K and keep it, are witnessing the three fold profit increase. As for commentators on the Internet, that have divided into two opposing camps:
- Those who claims Bitcoin will surge up to $100 K, or even $1 million for one BTC in the next years;
- Those who believe it’s a scam or a gambling.
According to the survey, 78% of people are aware of what crypto is.
British financial behavior authority has been taking a keen interest in this issue, and this week it has published an annual report on cryptos to show how people’s attitude towards crypto has changed. Who is a typical crypto holder. According to the new FCA data, about 1.9 million of British, or about 4% of adult population, have bought some cryptocurrencies. These are people who just keep digital assets in their portfolio and do not monitor the market dynamics. Such investors are usually called “holders”.
700K, or 5.40% of people used crypto at some moment of time. This is 2.35% more that a year ago. This means that at some moment more than 1 of 20 British people were under great provocation to take risk with crypto. What about the price?
BTC value has surged from $1000 at the beginning of 2017 to $20K by the end of the year. One year later it feel to $3000. Last summer the coin gained over $10K, and then in March it declined to $6000. Currently BTC is trading at over $9000.
So who are the typical investors and how they bet their money? Well, 79% of them are men, 69% are older than 35 years, and about 73% belong to the high social class ABC1.Besides, half of crypto holders make from 20 000 to 50 000 pounds sterling, and half of them have a value of less than 260 pounds, while 75% – less than 1000 pounds.
All this means that most users have taken a risk hoping that Bitcoin will reach $100 000.