According to the report of a crypto survey by the Financial Conduct Authority (FCA), there are 2.3 million English people who invest in cryptocurrencies in 2021 against 1.9 million in 2020. The average investment in crypto has also increased over this period. It went from £260 to £300.
This year, 78% of Britons have already heard of cryptocurrencies compared to 73% last year and 42% in 2019. However, the percentage of those who understand cryptocurrency has fallen by two points compared to last year. Despite this enormous growth in interest in cryptocurrencies, they only represent 5.3% of the total funds invested in financial products by the English.
According to a survey carried out by IFOP for Cointribune in February, only 3% of respondents said they were ready to invest in cryptocurrency.
Bitcoin remains “King” among cryptos for the English.
In the FCA investigation report, Bitcoin was the dominant cryptocurrency on all question marks. First, BTC is the crypto that English investors buy the most. 66% of English people hold or buy Bitcoins against only 35% for Ethereum and 21% for Litecoin and only 18% for Ripple.
Among the 78% of people who have heard of Bitcoin, 82% of them say they have heard of Bitcoin. Last year, Libra, which came after Bitcoin with 22%, saw its popularity drop to 4% this year. FCA pointed out that the renaming of the project to Diem may be the cause. In 2021, Bitcoin Cash is the dolphin of BTC. 21% of respondents say they recognize it. On the other hand, Ethereum is third in the ranking with only 14%.
Why do the British invest in crypto?
38% of respondents say investing in crypto as a bet that can either make them win-or-lose money. What is interesting, this point is down compared to last year when it stood at 45%. Second, the English invest to diversify their portfolio. This reason represents 30%, up 5% compared to last year.
In third place, 18% say they invest in cryptos rather than stocks and bonds. Just behind, 17% say they invest in cryptocurrency for long-term reasons as a retirement fund.
It is important to specify that 78% of the English invest in crypto with their own money. There are only 14% who buy cryptocurrency with borrowed funds.