The recent downward spiral of cryptocurrency prices has done little to bring down the excitement around the industry in Germany, with 29% of the population viewing investing in cryptos as an interesting investment opportunity. A report by Deutsche Postbank has revealed that interest in crypto investing is especially high among younger citizens, with one in two Germans between 18 and 34 expressing interest in investing in digital currencies. The study was conducted between late February and early March on the heels of sharp price declines, further proving that Germans remain unfazed by the unpredictable and volatile nature of the industry.
INDEPENDENCE FROM ESTABLISHED FINANCIAL SYSTEMS
Men and women answered differently when asked what aspect of cryptocurrencies interested them most. However, independence from established financial systems was found to be popular across the board. Women polled higher in that regard, with 60% citing it as the most important aspect of cryptos compared to 51% of men. Men were most interested in the prospect of high returns, with 56% of male respondents answering as such, compared to 36% of women.
Anonymity is also important to German crypto enthusiasts, with a third of the respondents identifying it as their reason for interest in the industry. One in every five crypto fans also cited the thrill of investing in new technology and other emotional reasons.
Interest in cryptos is especially high among younger Germans, with those between 18 and 34 expressing the most interest in, and knowledge of, cryptos. In fact, nearly one in two members of this age group are interested in cryptos. However, those who have invested are much fewer at 6%, with 14% expressing the intent to invest in cryptos within the next 12 months.
Postbank Chief Digital Officer Dr. Thomas Mangel was, however, quick to caution young investors not to allow cryptos to make them lose sight of more established investment opportunities. Mangel advised the young investors to consider investing in securities instead, as the speculative nature of the cryptocurrency market exposes them to huge risk.
The report, which polled 3,100 respondents, also pointed to the influence that the country’s media has had on people’s perceptions of the crypto industry. During the industry’s peak season, many industry experts were quick to hail it as revolutionary. However, as prices fell drastically after the turn of the year, those experts became quieter. The media covered every aspect of the industry extensively. While Germans stand to lose fortunes through investing in volatile digital assets, Mangel finds it noteworthy that they are still interested in investing in the industry.
HOW MUCH DO YOU REALLY KNOW?
Cryptocurrencies were covered extensively by the German media, spurred mainly by their rise in popularity and their volatile nature. Continued crypto investment by some of the biggest corporates also played a big part in their popularity with the media. Constant media exposure has led many people to believe that they are very knowledgeable about the industry, the report found. It found that 20% of Germans considered themselves to be very knowledgeable about the industry. This amount is higher among those between the ages of 18-34, with 29% considering themselves crypto experts.
Mangel cites media coverage as the reason many people overestimate their knowledge about the risks involved in investing in cryptocurrencies. Among the things many people are unaware of are the tax requirements for cryptocurrency holders. One also stands the risk of losing his or her entire investment, a consideration Mangel feels is often overlooked by many.