The Financial Conduct Authority (FCA), United Kingdom, has recently revealed that a lot of individuals under the age mark of 40, are trading in crypto, due to a sense of competition with friends and family. In accordance with the research published by the UK financial services watchdog on Wednesday.
As revealed in the data obtained in a survey conducted by the Financial Conduct Authority, three-quarters of young age investors are driven by competitiveness while placing their money in a cryptocurrency.
It has also come to notice that around 68% of the respondents compared investing in digital assets to gambling on money. Over 58% of the respondents said that they were incentivized to make a high-risk investment following the popularity regarding the same on social media.
Today, Bitcoin has managed to surge near its all-time high, the biggest cryptocurrency that is considered an extremely fluctuating asset.
Regardless of the fact that Bitcoin is termed as an asset to hold for the long-term, only 21%of under the 40s in the United Kingdom said that they will hold the asset for more than a year.
The Executive Director of Markets at the FCA, Sarah Pritchard, said:
“We are seeing more people chasing high returns. But high returns can mean higher risks. We want to give consumers greater confidence to invest and help them to do so safely, understanding the level of risk involved.”
It should be noted that cryptocurrencies are not regulated in the United Kingdom, and it clearly means that people are not protected by consumer protection laws if their funds are lost for any reason.
Jon Cunliffe, the BOE Deputy Governor, said that he likened the surge and development in the crypto market to the rise of subprime mortgages that led to the 2008 global financial crisis.