A new study has recently been published that suggests more Brits might have invested in cryptocurrency than traditional stocks and shares.
7% of young adult Brits have bought Crypto
The study was conducted by the UK-based investment firm AJ Bell. According to the study, 7% of all adult respondents report having bought cryptocurrency over the course of the last year. In comparison, only five percent of the respondents have into a stocks and shares savings account (ISA).
Since these Individual Savings Accounts are tax-free, they are the most widely used investment instrument for retail investors to buy equity. As can be expected, most of the investors who buy in to crypto are predominantly male young adults. Laith Khalaf, Financial Analyst at AJ Bell, commented on the results:
When more people are buying cryptocurrency than investing in a stock market Isa, you have to conclude the world’s gone crypto crazy.
Contradicting Results – Has the UK flipped?
In an earlier study published by the think tank Parliament Street in March 2021, roughly a third of the respondents said that they wouldn’t invest in crypto, stating that it’s too late to enter the market. In the same study, 52% of the respondents stated that they would rather invest in traditional assets, such as equity and gold, rather than crypto.
In general, one should be careful when comparing studies from different sources, as the researchers involved in the study often use different parameters for their evaluations. Nevertheless, the most recent findings confirm the narrative that the adoption of cryptocurrencies is speeding up.
— Charlie Shrem (@CharlieShrem) June 15, 2021
Just one week ago, three South American countries have announced adopting Bitcoin as legal tender. In other Latin American countries such as Argentina and Venezuela, the adoption of cryptocurrencies is driven by rampant inflation, coupled with low energy prices, which encourages the creation of retail mining operations.