Research IW Capital: 38% of the British “don’t understand” cryptocurrency

The recent research IW Capital has shown that 38% of the British “don’t understand” cryptocurrency and only 5% of cryptocurrency investors as a result have got profit. Also in results of a research it is noted that the vast majority of the British investment community considers that investment into cryptocurrencies is the worst decision, than capital investments in the traditional markets.

The investment firm has interviewed 2000 respondents from whom 38% have said that they don’t understand cryptocurrency. Besides, at a third of respondents an impression is made that the estimated bubble of bitcoin will blow up soon. At the same time only 7% of respondents consider that it is better than investment into cryptocurrency, than investment of capital in traditional assets.

According to a research, only 5% of cryptocurrency investors have got profit. Most likely, this statistics is distorted by the fact that more than 2,5 million British “accidentally invested in cryptocurrency without full understanding of investments” that is the fastest way to lose money, especially in the bear market.

“Data show that, in fact, the British haven’t enough information or knowledge of a subject of cryptocurrencies. Actually, many don’t know about a subject anything at all”.

Losses were also aggravated with the fact that investors didn’t take appropriate measures of care in respect of investments. IW Capital notes:

“Despite a widespread lack of knowledge connected with this concrete class of assets, 1 of 20 British – nearly 3 million people – have made investments in cryptocurrencies, about her plainly without knowing anything. And only 5% consulted with the financial expert at investment into digital currencies”.

Losses from investment were suffered by about 11,5 million people. The CEO of IW Capital Luke Davis has also said that results of a research “very much guard”:

“The confusion around the industry of cryptocurrencies shocks, but doesn’t surprise. I don’t consider that it is reflection of a profile of risk of the British investors as interest in alternative financing remains. However the fact that investments have been made without appropriate financial consultations and also without knowledge of the basic facts, very much guards”.

It is no secret that the number of primary investments into cryptocurrencies has strongly increased at the end of last year when the market has sharply gone up. But soon sharp decrease has begun after that and many of those who have made investments then, sustain heavy losses today. Such results once again prove that it is necessary to conduct own research before investment into cryptocurrency and to show due discretion. Never it is necessary to put more, than you are able to afford to lose.

In June of this year the similar research has been conducted by the regulator on securities of the Canadian province of Ontario. Within the poll it has been found out that 5% of residents of Ontario own cryptocurrency assets at present, however at the same time only 15% of holders of cryptocurrencies understand technology bases.