One in five UK adults who have never owned cryptocurrencies would consider buying some over the next three years, according to a new research by communications agency Citigate Dewe Rogerson.
The research, which surveyed more than 1,000 people in the UK, also found that despite the growing acceptance of cryptocurrencies, concerns over regulation and volatility are hampering adoption.
Of those who are not considering buying or investing in cryptocurrencies, 67% said it’s because they are too risky or volatile. 61% cited the lack of knowledge, and 43% mentioned concerns over the lack of regulation protecting investors.
However, a separate research by Citigate Dewe Rogerson with 30 financial professionals reveals that 73% anticipate more regulation around cryptocurrencies protecting investors in the years to come.
According to Phil Anderson, the executive director of Citigate Dewe Rogerson, the findings show that many investors “are temped to dip their toe into the cryptocurrency marketplace, but there are a number of obstacles preventing them from doing this.”
However, many of these obstacles to cryptocurrency investment will be addressed in the coming months and years, he said.
“Assuming valuations continue to rise, many more investors will be attracted to this market,” Anderson predicts.
A separate research by Toluna, a provider of on-demand consumer insights, released earlier this year found that of 1,002 UK residents polled, 41% believe cryptocurrencies would be used widely in the near future.
SME owners in the UK too are bullish on cryptocurrencies. A national study by Paymentsense, which gauged the sentiment of 504 small business owners in January, found that 35% anticipated cryptocurrency payments would become a valid and normal method of transacting within two years. 21% were even more optimistic, predicting widespread adoption within a year.
Currently, only 13% of small business owners in the UK accept cryptocurrency payments, but 25% predict cryptocurrencies will eventually become a mainstream method of payment for goods and services.
“It’s clear that cryptocurrencies are moving swiftly towards the mainstream,” said Guy Moreve, head of marketing at Paymentsense. “However, small business owners considering cryptocurrency as a payment option should be clear about how they can integrate it with their existing financial arrangements. Will suppliers or staff accept it? Can they pay local and national government agencies with it?”
“Using a trusted payment processor or merchant service provider can help guard against this by allowing a swift currency exchange, and improve security processes. For entrepreneurs in emerging sectors it might be worth the risks involved, but for others in more established or slower-moving areas it could be wiser to wait and see how things evolve over the next six to 12 months.”