As Bitcoin reaches the 10th year since its launch announcement by Satoshi Nakamoto, IW Capital has commissioned research, involving 2,007 respondents, exploring the UK’s attitudes to cryptocurrency as an investment opportunity opposed to traditional and alternative methods.
38% said that they do not understand cryptocurrency at all. A third of the UK believes that the cryptocurrency bubble will burst, and 27% feel that Bitcoin et al are a less stable investment than SME investment. Only 7% believe cryptocurrency is more valuable than traditional stocks and shares investments, whilst 5% of those who have invested in cryptocurrency have made financial gains.
London loves crypto
A fifth of Londoners believe that cryptocurrencies are more valuable than traditional investments, such as stocks and shares. This is higher than the North East (10%), South East (7%) and Yorkshire and Humberside (5%). The South East (29%), Scotland (27%) and the South West (24%) are the most conservative, sticking with the view that traditional investments still rule the roost.
Luke Davis, Founder, and CEO of IW Capital, says: “With so much advertising and airtime dedicated to cryptocurrencies, particularly over the past 12 months, it is shocking, but not surprising, to see so much confusion around the topic of cryptocurrency. To see that investments have been made without the proper financial advice and a lack of facts is very concerning. With so many high-profile celebrities and business people coming out and supporting cryptocurrency investments, I believe that we will continue to see confusion and a lack of information surrounding them.”
Whilst it is now more accessible to invest into currencies, with e-currency and e-trading platforms easily accessible via smartphones and tablets, there is a lack of information around other, more stable investments, such as SME investments, which can deliver a consistent return when advised upon by a qualified professional.
“Ambassadors have a responsibility to supply accurate and correct information to potential investments. Many treat cryptocurrency decisions like a bet in a bookmaker, rather than as a serious investment decision like it is,” argues Davis.
“There is a place for cryptocurrency investment, but there are so many other investment opportunities that are not taken advantage of. My major concern within cryptocurrency investment is the lack of transparency in the investment. There are so many great SME-based investments that have superb tax incentives to build a portfolio upon, but they are undersold against the allure of Bitcoin and other cryptocurrencies as a viable investment for the first-time investor,” he concludes.
Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.