Cryptocurrencies boom as Brits throw caution to the wind

The number of Britons who own cryptocurrencies has risen to an estimated 2.3 million amid signs that fewer consumers believe that putting money into the nascent market is a gamble. Read more: Cryptocurrencies boom as Brits throw caution to the wind

Cryptocurrencies boom as Brits throw caution to the wind

The number of Britons who own cryptocurrencies has risen to an estimated 2.3 million amid signs that fewer consumers believe that putting money into the nascent market is a gamble.

The Financial Conduct Authority said yesterday that its latest research indicated that about 400,000 more adults had recently bought bitcoin and other cryptoassets. The regulator’s survey suggests that 4.4 per cent of the adult population hold cryptocurrencies, up from 3.9 per cent in 2020.

The median holding has risen to £300, from £260, and the biggest investment by value reported to the survey was £7 million, up from £30,000 a year ago.

Even though ownership is rising, the watchdog found that the public’s understanding of the assets was falling. Its research also showed that 14 per cent of consumers had borrowed to invest in the cryptomarket, trends that are likely to worry regulators.

Cryptocurrencies such as bitcoin exist only as strings of computer code and, unlike conventional forms of money, are not controlled by governments or central banks. The FCA believes that these assets have no inherent value and that their high volatility puts consumers at risk.

Cryptocurrencies are mostly unregulated. If investments blow up, consumers are unlikely to be eligible for redress from the Financial Services Compensation Scheme, the lifeboat fund for the investment industry.

Global regulators are also concerned that the cryptomarket is exploited by money launderers and other criminals.

Rick Eling, investment director at Quilter Financial Planning, part of Quilter, the wealth manager, said: “The fact that participation in cryptocurrencies is up but understanding is down paints a troubling picture.”

The FCA’s findings are based on an online survey of 2,568 people, of which 146 were former or present cryptoasset investors. This sample was topped up with 994 people who owned or had previously had owned digital assets.

Bitcoin rose from just under $29,000 at the start of the year to more than $64,000 in April, but is now back below $39,000.

Read more:
Cryptocurrencies boom as Brits throw caution to the wind

Source : Business Matters More   

What's Your Reaction?

like
0
dislike
0
love
0
funny
0
angry
0
sad
0
wow
0

Next Article

British food and drink exports to EU fall by £2bn in first quarter of 2021

British food and drink exports to the EU fell by £2bn in the first three months of 2021, with sales of dairy products plummeting by 90%, according to an analysis of HMRC data. Read more: British food and drink exports to EU fall by £2bn in first quarter of 2021

British food and drink exports to EU fall by £2bn in first quarter of 2021

British food and drink exports to the EU fell by £2bn in the first three months of 2021, with sales of dairy products plummeting by 90%, according to an analysis of HMRC data.

Brexit checks, stockpiling and Covid have been blamed for much of the downturn, but the sector has said the figures show structural rather than teething problems with the UK’s departure from the EU.

“The loss of £2bn of exports to the EU is a disaster for our industry, and is a very clear indication of the scale of losses that UK manufacturers face in the longer-term due to new trade barriers with the EU,” said Dominic Goudie, the head of international trade at the Food and Drink Federation (FDF).

He called on the government to “stop prevaricating” over proposals to help exporters “shut out of trading with the EU”.

Sanitary and phytosanitary checks, which have been in the headlines in relation to Northern Ireland, apply to all food and drink exports going to the EU.

The HMRC figures show dairy products down more than 90% and exports of cheese down by two-thirds compared with 2020. Whisky fell 32%, chocolate 37% and lamb and mutton 14%.

Overall food and drink exports to Ireland fell by 70.8% year on year, to Spain by 63%, Italy 61% and Germany 55%.

Trade in the other direction was also hit. UK imports from the EU of wine were down 20%, fruit 15.7% and vegetables 13.9%. Imports of cheese, chicken and beef from Ireland and elsewhere also fell.

The decline in exports to the EU meant sales to the rest of the world, which have stabilised, now account for more than 50% of all British exports of food and drink.

The easing of Covid restrictions drove “strong growth” in exports to pre-pandemic levels in China, Japan, Hong Kong and South Korea.

Exports to China were up by a quarter, driven by growth in the sale of pork, whisky and vegetable oils, said the FDF’s Trade Snapshot report.

There is also fresh hope of a boom in whisky exports to the US after Washington and London agreed to suspend retaliatory tariffs.

Read more:
British food and drink exports to EU fall by £2bn in first quarter of 2021

Source : Business Matters More   

This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies.