More than one third of the British population do not understand cryptocurrency, and just 5 per cent of investors have seen a profit.
IW Capital’s research found that 38 per cent of those polled lacked a basic understandng of crypto, and a third of respondents said they believed the Bitcoin bubble would burst in the near future.
A spokesperson for IW Capital said: “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.”
This lack of understanding becomes a problem when Brits purchase crypto without first being aware of the risks and rewards that come with investment.
“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 per cent having taken advice from a financial adviser when investing in cryptocurrencies,” the firm continued.
“Only 5 per cent 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.”