Though Bitcoin has been around in the last nine years, the crypto market is still relatively new. And also, have you ever wondered how many people actually gained a significant amount of money from investing in cryptos early?
That can be a tough question considering the loss in Bitcoin’s price since its peak last December. In 2017, we’ve seen how Bitcoin’s price started from $1,000 only to go all the way to almost $20,000. According to a report made by IW Capital Group, which is a Mayfair-based SEM investment house, 38{4ede17fdd9b4ce8121d01fc4b54913fe84f8215aace504cc657695cefb5329ff} of Brits don’t exactly know what cryptocurrency is.
We are currently looking at Bitcoin looking Bullish after discussions regarding a Bitcoin ETF have been circulating for the past week. Despite the bullish trend today, only 5{4ede17fdd9b4ce8121d01fc4b54913fe84f8215aace504cc657695cefb5329ff} of crypto investors actually made financial gains. That is quite a sad reality considering that the market is actually optimistic regarding regulatory clarity and the possibility of having institutional investors.
However, Brits in the report are still conservative when it comes to their investment. Only 7{4ede17fdd9b4ce8121d01fc4b54913fe84f8215aace504cc657695cefb5329ff} of Brits think that cryptos are more important than shares and stocks.
3 Million Brits
There is a significant number of Brits that invested in cryptos. According to the report, almost 3 million Brits decided to invest using e-trading platforms. Since only 5{4ede17fdd9b4ce8121d01fc4b54913fe84f8215aace504cc657695cefb5329ff} took any type of crypto investing advice from a financial expert, that only means that around 2.5 million Brits “casually” invested without really understanding the risks and the intricacies of the industry.
IW Capital said in the report that “The data reveals that, fundamentally, Brits do not have enough information or knowledge on the topic of cryptocurrency. In fact, many have no knowledge about the subject whatsoever”.
In addition to this, IW Capital continued stating that: “Despite a widespread dearth of knowledge surrounding this particular asset class, disconcertingly, 1 in 20 Brits – nearly 3 million – have invested in cryptocurrency without fully understanding it, with only 5 percent having taken advice from a financial adviser when investing in cryptocurrencies. Only 5 percent of those who have invested in cryptocurrency have made financial gains. 11.5 million have failed to make a financial gain when investing in a cryptocurrency”.
Highly Speculative
It is true that cryptocurrencies are highly speculative. This year, there was a time when Bitcoin lost as much as 70{4ede17fdd9b4ce8121d01fc4b54913fe84f8215aace504cc657695cefb5329ff} of its value from its all-time high last December. However, being a new market, it is true that even regulators are still trying to figure out what to do exactly.
By looking at this report, it gives us an idea of what Brit investors think when it comes to cryptocurrencies. It isn’t surprising as well that many simply went after cryptocurrencies after Bitcoin was able to have a bull-run.
And also, different experts have a different opinion regarding cryptocurrencies. Could there be a time when more people will have knowledge regarding the wonders that blockchain can bring to the table? In fact, there are now schools that are including blockchain and crypto-related discussions in the mix. And this isn’t only true for colleges offering courses that are geared towards blockchain-related opportunities. There are investing classes that are now aimed toward this direction.
