Christopher Woolard, Executive Director of Strategy and Competition, Financial Conduct Authority (FCA), has called on all cryptoasset investors to be cautious when investing their money adding that they may end losing “all of their money.”
The director noted this while releasing a report titled ‘Revealing Reality: How and why consumers buy cryptoassets.’ The report captured the sentiments of previous and current cryptoasset investors.
This research gives us evidence we haven’t had before about how consumers interact with cryptoassets. This will help us ensure that we are acting on evidence as we seek to protect consumers and market integrity.
The director added that, from the research, it is evident that a majority of those currently investing in cryptoassets do not have an in-depth understanding of the market. While the research recorded some negative sentiments from some cryptoasset investors, “it does not suggest a large impact on wider society.”
Nevertheless, cryptoassets are complex, volatile products – consumers investing in them should be prepared to lose all of their money.
The report captures a previous cryptoasset investors, Fred, who invested some inheritance money a couple of years ago and now he is “ashamed” of his investment after losing money. Another cryptoasset investor, Rick, was captured in the report saying that although his investments have seen some up and downs, he is still convinced his girlfriend that cryptoassets are “the safer option.”
A majority of those featured in the report are confident that cryptoassets such as Bitcoin have a future. But, from Christopher’s side of the story, cryptoassets are here to defraud investors of their hard earned money.
The director’s views seem to come from a separate research that concluded that 73 percent of consumers in the United Kingdom do not know what is a cryptocurrency and only 3 percent have ever invested in virtual currencies.
Apart from the complexity and volatility issues cited by Christopher, do you think cryptoasset investors should continue investing in digital currencies?
Let us know your thoughts in the comments section below.