What a year crypto has had so far. Total market value raced past $2 trillion. Coinbase, one of the world’s biggest crypto exchanges, went public at a valuation of $86 billion - far in excess of the market value of the stock exchange on which it trades. And, as you may have heard, Elon bought some crypto.
No wonder that, according to Deloitte’s latest global blockchain report, 76% of financial services leaders believe that ‘digital assets will serve as a strong alternative to, or outright replacement for, fiat currencies in the next 5–10 years’. Digital assets, it is said, are in the foothills of a meteoric rise that may make this the world’s fastest adopted technology - even ahead of the internet.
But what does it all mean for the everyday consumer?
We wanted to know what the people of Great Britain think so, earlier in the year, we teamed up with FocalData to survey as representative a cross-section of the UK population as possible - people across the nation of all ages, genders and backgrounds - to ask them what they think about crypto, what might be stopping them from getting involved, and what they expect to see in the years ahead. Here’s some of what we found!
Barriers to crypto adoption
Despite the headlines, it’s clear from responses that there are a few common themes that stop people from dipping their toes into the cryptocurrency space. The leading cause - cited by 52% of all respondents - is a lack of knowledge about cryptocurrency in general, followed by concerns about security and risk. Finances - knowing how to buy crypto and having the money in the first place - continue the list, with comparative minorities concerned about loss in value and the ability to spend cryptocurrency in the same way as traditional money.
The good news is that, as crypto becomes more and more popular, there are more and more sources of good-quality information to choose from - as well as an increasing choice of user-friendly solutions (like Zumo!) that aim to make the crypto experience as simple, safe and secure as possible.
Why do people invest in crypto?
If people do invest in cryptocurrency, what is it that motivates them to do so in the first place? Perhaps unsurprisingly, the number one factor that tempts people to gain exposure to crypto assets is the desire to make their money work more effectively for them, with 43% of all respondents pointing to this as a prime motivation. Also powerful is the social effect, with 27% tempted to invest because others are doing so, and 17% looking to someone they know who uses and is knowledgeable about cryptocurrency. Other more principle-driven motivations range from wanting more personal control over money (22%) and an affinity for the principles behind cryptocurrency (19%) to simply wanting a bit of fun (19%).
As we see decentralised finance solutions continue to evolve, alongside new trends such as blockchain gaming or NFT collectibles, it will be fascinating to see the new applications that emerge and how this impacts the way we choose to use and interact with cryptocurrency over the years to come. As well as, let’s hope, a better financial future for all.
What is the future of crypto?
Finally, we asked people about their views on crypto’s role looking to the future. Already, 35% of UK adults surveyed agreed strongly or somewhat with the statement: “Cryptocurrency is the future of finance”, with only 7% saying they had never heard of crypto. It’s a sign of growing awareness and belief worldwide, with crypto adoption reckoned to have increased by 881% globally in the last year.
On points of payments, 36% expected to see cryptocurrency used at least as commonly as cards or cash within their lifetime, with only 24% disagreeing that cryptocurrency is now a credible alternative to other financial assets. Public attitudes towards crypto are changing rapidly and, increasingly, point to popular opinion that crypto is here to stay.
We hope you found something of interest in this brief overview of attitudes to crypto in the UK. Certainly, we’re seeing attitudes continue to shift extremely rapidly - and it might be something interesting to look back on in the years to come as the industry continues further down the path to mainstream adoption.
As for Zumo, we’ll continue to work hard to break down the barriers, provide you with secure, accessible products to fit with your lifestyle and your aspirations, and work to continue to adapt to this rapidly evolving crypto space.
Like the crypto ecosystem, we’re only just getting started!