Amazed FCA estimate 7m adults in UK own crypto

[LondonChris]

I'm conscious that this post in this category is the equivalent of throwing a rock in a pond, but I'm honestly stunned that the FCA estimate as many as 7m adults in the UK (apparently 12% or 1 in 8) own crypto as of August 2024. To put this into context, ONS data states that in 2022/2023 (the last period for available information) that only 3.8m people invested in stocks & shares ISAs. I'm personally in the John Paulson camp on crypto (i.e. crypto is a limited supply of nothing) and therefore I'm staggered that the FCA's figures indicate that over 3m adults are happy to to ignore the stock market but punt in crypto.

Trying to set aside this section's natural enthusiasm for the product, do members actually believe the FCA's estimate - i.e. nearly 1 in 8 adults ? Given that many (but clearly not all) older investors might shy away, the estimate probably suggests that amongst younger adults (say below 60) possibly 1 in 6 adults are holders (on the basis that there are c.17m adults aged >60). This looks like a staggering stat to me. Curious in honest thoughts setting aside any innate product favouritism.

[tacpot12]

I'm not sure I believe that it is so high, but I've done no research, and perhaps the FCA has some basis for extrapolation.

I can see that cryptocurrencies might be of interest to a great many groups: the young, criminals, people who need to send money abroad to relatives, investors looking to diversify into more speculative assets, etc., but given the complexity of purchasing them, I am surprised that so many people would have successfully done so. I'm very IT literate and some cash to speculate with, but my one venture into crypto via the easy route of PayPal was a wild ride of volatility and, on reflection, I considered that it was not for me.

[Urbandreamer]

Trying to set aside this section's natural enthusiasm for the product, do members actually believe the FCA's estimate - i.e. nearly 1 in 8 adults ? Given that many (but clearly not all) older investors might shy away, the estimate probably suggests that amongst younger adults (say below 60) possibly 1 in 6 adults are holders (on the basis that there are c.17m adults aged >60). This looks like a staggering stat to me. Curious in honest thoughts setting aside any innate product favouritism.

Honest thoughts:
I suspect problems with the sample size and selection criteria. It was a small sample and was clearly NOT intended to represent ALL adults. Respondents who had not heard of "crypto" were excluded from the sample. Also all responses were obtained digitally, excluding adults who avoid the internet.

Details here:
https://www.fca.org.uk/publications/res ... earch-2024

It is nice to know that the FCA is actually researching the subject rather than as I thought, occupying it's ivory tower in blissful ignorance.

[scotview]

but given the complexity of purchasing them, I am surprised that so many people would have successfully done so.

I agree with that.

Additionally, from personal experience lately, banks might be blocking crypto purchases until the purchaser proves that there is no fraudulent activity involved. I would think many people at that stage would give up.

It did cross my mind that banks might be strategically blocking their "fiat" going across to crypto.

[Urbandreamer]

but given the complexity of purchasing them, I am surprised that so many people would have successfully done so.

I agree with that.

Additionally, from personal experience lately, banks might be blocking crypto purchases until the purchaser proves that there is no fraudulent activity involved. I would think many people at that stage would give up.

It did cross my mind that banks might be strategically blocking their "fiat" going across to crypto.

The difficulty is more perceived than actual. You have to take a FCA approved test before you are allowed to buy. While it's easy to fail, it's also easy to pass. There are crib sheets and I believe that every regulated exchange that demands the test also makes educational materials available for you to find the answers in. Obviously you also need to provide KYC details. Usually a scan of your driving license or passport.

As for banks, it depends upon who you are with. Some are relatively friendly, others regard it as verboten. If you are interested, do your research FIRST.
Both the banks that I have accounts with let me fund my crypto exchange, though Santander has smaller limits than Nationwide.

After you've set thing up, it's no more difficult than buying or selling shares. I should also say that I've had to contact my bank to reassure them that funding my stock broker was not fraudulent activity.

Returning to the survey. I strongly recommend anyone interested in the subject download the PDF report. The responses are likely not what newspapers would have you believe.