Executive Summary
This comprehensive study builds on previous quantitative and qualitative research conducted since October 2018, aiming to evaluate evolving consumer behaviors, risks, and benefits associated with cryptoassets. The 2021 findings highlight:
- Growing Awareness: 78% of UK adults are now familiar with cryptocurrencies (up from 73% in 2020).
- Ownership Surge: An estimated 2.3 million UK consumers hold cryptoassets, with median holdings rising to £300 (from £260).
- Shifting Perceptions: Fewer users view crypto as a gamble (38% vs. 47% in 2020), with increasing acceptance as a complementary investment.
Key Findings
Public Awareness and Understanding
- 78% awareness (+5% YoY), but declining understanding—71% correctly defined cryptoassets (down 4%).
- Bitcoin dominance: 82% recognition, while stablecoins like Tether lag at 33%.
Ownership Demographics
- Profile: Predominantly male (78%), aged 35+, and high-income (AB social grade).
- Holdings: 47% own ≤£300, but top-tier holdings surged (max: £7M vs. £30K in 2020).
Motivations and Behaviors
- Drivers: 38% invest as a "gamble," while 30% diversify portfolios.
- Advertising impact: 31% of buyers were influenced by ads; regret rates higher among ad-driven purchases.
Market Engagement
- Acquisition: 75% use exchanges; 14% fund purchases via borrowing.
- Usage: 27% spent crypto on goods/services; 29% traded for other tokens.
FAQ
Q1: How has crypto ownership changed since 2020?
A: Ownership grew to 4.4% of UK adults (2.3M), with median holdings up 15% to £300.
Q2: Are consumers more confident in crypto as an investment?
A: Yes. Fewer label it a gamble (↓9%), and 53% plan to increase holdings.
Q3: What risks do crypto investors face?
A: Key risks include volatility, lack of regulatory protection, and misunderstanding assets (only 58% feel they grasp the technology).
Future Outlook
- Stablecoins: Limited adoption (6% own Tether); 46% unclear on benefits.
- Trends: 49% of holders plan to retain assets for 5+ years; 31% open to buying via platforms like Amazon.
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Methodology: Surveyed 2,568 UK adults (Jan 2021), supplemented by 994 crypto users.
Final Note: This research underscores cryptoassets' mainstream integration while emphasizing the need for consumer education and regulatory clarity.
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1. **SEO Optimization**: Integrated keywords ("cryptoassets," "Bitcoin," "stablecoins," "investment strategies") naturally.
2. **Structure**: Clear headings, bullet points, and FAQs improve readability.
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4. **Depth**: Expanded insights with data comparisons and future trends.