Nearly a third of people think bitcoin will collapse in the next six months

 
Courtney Goldsmith
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Bitcoin is more mainstream than ever, but the public is still cautious (Source: Getty)

Although public awareness of bitcoin is now at an all time high, confidence in the cryptocurrency is still low as new research has suggested nearly a third of people think it will collapse in the next six months.

Bitcoin's price, which is famous for its volatility, climbed to record highs of more than $7,000 in recent weeks. On Sunday, it plunged back below $6,000, but prices recovered somewhat yesterday and were up a further 1.32 per cent to $6,603.92 at the time of writing.

A survey by market research firm D-CYFOR found that although 80 per cent of the general public in the UK have heard of bitcoin, 58 per cent said they would not invest in it and 30 per cent predict it will collapse and be worthless within the next six months.

On the flip side, 54 per cent were optimistic about an increase in its value over the next six months, but only 15 per cent said they were thinking of investing in it while seven per cent said they already had.

Millennials were the most open to investing in bitcoin with 23 per cent considering buying into the cryptocurrency. Only four per cent of people aged 65 and above wanted to invest in bitcoin.

Bitcoin is having its moment in the limelight, but while that means more people are investing in the cryptocurrency, it also means increased scrutiny from regulators.

Today, the UK's Financial Conduct Authority (FCA) warned of the dangers of investing in cryptocurrency contracts for difference, calling the investments "extremely high-risk, speculative products".

That came after a crackdown on initial coin offerings (ICOs) by the FCA in September. The watchdog warned investors they should "be prepared to lose their entire stake" when participating in ICOs, which companies use to raise cash in exchange for a digital token.

Read more: Bitcoin cash briefly overtook ethereum's market cap

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