More than a third of Britons now own some form of cryptocurrency, with 41% of men and 27% of women having invested in the industry.

This according to a recent report by VoucherCodes which found that 34% of UK citizens hold some form of digital asset. The most popular coins among UK crypto buyers are Bitcoin (20%), Ethereum (8%), Dogecoin (6%), Litecoin (5%) and Chainlink (3%).

The news that a third of the UK population has entered the crypto market comes against the backdrop of the cost of living crisis as petrol prices soar and a plummeting pound against its international rivals.

As Robert Peston, the political editor of ITV News pointed out on Twitter this Monday, “the value of the pound against the dollar has fallen by more than a fifth. Against the euro, the fall is 7%, lower but not negligible. Against the Swiss franc, the fall is more than 14%. In other words, the value of British assets has collapsed under this government.

Cryptocurrency Adoption Takes Off

There is now growing evidence that those who get cryptocurrency buy into it, while those who don’t risk being left behind. There are still a significant number of UK residents who have yet to dip their toe in the crypto waters and the majority of them seem determined never to wade through.

Among the 66% of Brits who own no cryptocurrency, there remains a hyper-skeptical core of diehard crypto naysayers. Unlike the 34% of UK citizens already using or holding crypto, a similarly sized group of 35% dug their heels in and said “no way”.

Promo Codes

The most common reason users cite for not adopting cryptocurrency is a 40% lack of knowledge or understanding. This is closely followed by the claim that it is unregulated. Of the other reasons cited for not adopting crypto, many fall into the category of a lack of understanding or knowledge.

As report contributor Dr. Garrick Hileman puts it, “education remains perhaps the biggest barrier to crypto adoption today.”

A much lower percentage of citizens (19%) claim to be aware and would still not invest at all.

Britain’s new government is getting one thing right

Whether UK citizens fully understand cryptocurrency or not, UK officials seem to understand its growth potential. After the Conservative leadership election, the new UK government led by Liz Truss was quick to signal that it was open to crypto business.

In a speech to Britain’s parliament earlier this month, Richard Fuller, the economic secretary to the Treasury, explained why the country is embracing the industry. Fuller said “the UK government is looking at ways to achieve a global competitive advantage for the UK”.

Fuller said the government believes the UK “can become the best place in the world to start and scale crypto technologies.”

Unfortunately for Truss, while his government may understand the potential of the cryptocurrency industry, his broader economic policies indicate less understanding of basic economic reality.

After flagging tax cuts and major new spending plans in its so-called mini-budget this week, the pound has fallen in value. The market was spooked by the implication that UK borrowing levels would have to rise. The deteriorating macroeconomic environment has led to speculation that the Bank of England may be forced to implement an emergency interest rate hike.

The UK may be right that cryptocurrency offers a huge potential growth market for the country, but it cannot offer a panacea for reckless economic policies in all other areas.

Disclaimer

All information contained on our website is published in good faith and for general information purposes only. Any action the reader takes on the information found on our website is strictly at their own risk.