A new study in the UK has revealed up to 3 million people have invested in Bitcoin in the country through online trading platforms.
The research conducted by London investment house IW Capital, and quoted in the British press, also revealed that only 5 percent of those investing had taken any kind of professional advice before taking the plunge. Further, 2.5 million investors made their commitments without fully understanding cryptocurrency.
The Daily Express reported that total of 38% of the survey’s sample of 2,007 respondents claimed that they didn’t understand cryptocurrency and a third thought it was a bubble about to burst, although no data regarding the levels of knowledge among the larger portion of those polled was published.
IW Capital maintains there is an underlying lack of knowledge in British society regarding the subject of cryptocurrency despite the large numbers investing. The firm’s Chief Executive Officer, Luke Davis, also commented:
“It is shocking, but not surprising, to see so much confusion around the topic of cryptocurrency. I do not believe this is a reflection of UK investors’ risk profile, as a positive appetite for alternative finance remains, but to see that investments have been made without the proper financial advice and a lack of facts and education is very concerning.”
Other revelations which came from the survey were that 7 percent of participants thought cryptocurrencies were more valuable than traditional stocks and shares and that only 5 percent of those investing claimed to have gained financially from the experience.
A further report published this week suggests that digital currency prices are largely driven by a phenomenon known as “crowd psychology”. “This field relates to the behaviors and thought processes of both the individual crowd members and the crowd as an entity. Crowd behavior is heavily influenced by the loss of responsibility of the individual and the impression of a universality of behavior, both of which increase with crowd size,” according to Wikipedia.
Meanwhile, the technology behind cryptocurrencies is burgeoning in the UK. The country is known as a driving force in blockchain research and the spread of solutions is being utilized by numerous companies, as the country becomes one of the world’s most significant and dynamic fintech hubs.
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