TL;DR Breakdown
- 2021 saw a surge in the demand for cryptocurrencies in the United Kingdom.
- FCA conducted research that revealed that 2 million people in the UK have crypto.
- FCA claimed that the number of holders has increased but, few people understand crypto.
Cryptocurrencies definitely have a future today and in the near future, their dominance will increase. In the United Kingdom, there was a survey initiated by the country’s Financial Conduct Authority. This survey was initiated to find out about the crypto industry’s market dominance. This dominance was due to an increase in the demand for crypto.
On Thursday, the Financial Conduct Authority or FDA published the results that came from the survey. The results were not shocking owing to the popularity of cryptocurrencies in the country. In the year 2020, there were around 1.9 million people in the UK that were holding crypto. Now, this number jumped up from 1.9 million to 2.3 million. A surge was also seen in the volume of crypto that a person was holding on average.
The growth of cryptocurrencies in the UK
Cryptocurrencies traded in an increasing volume. On average, the median holdings rose from 300 British pounds to around 260 British pounds. This is definitely a huge increase for just a year and one can see that the future is definitely near when a major population will be holding cryptocurrencies. Indeed, there are chances that with time, many useful applications of crypto in the country will be seen.
Of all the adults, according to the survey that FDA conducted, around 78 percent of people had heard about crypto. This is up by 5 percent from the year 2020.
According to FCA, there was a decrease in the number of people who actually knew what crypto was. Around 71 percent of the people actually understood what crypto was but this is down by 4 percent from last year. These 71 percent chose the correct statement regarding crypto which is a decrease from 75 percent from the year 2020.
“This suggests there may be a risk of consumers engaging with cryptocurrency without a clear understanding of it,”
As FCA claims
Also, during the study, people were asked what are the cryptocurrencies they know about and the most obvious answer was Bitcoin. Hence, it was concluded by FCA that among all the cryptocurrencies, the people of the UK mainly favor Bitcoin as it is the world’s biggest cryptocurrency.
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