German Bank Survey Shows High Percentage of Cryptocurrency Awareness in the Country
Almost Half of Young Germans Know About Cryptocurrency
A recent survey by the German bank, Postbank revealed that many in the country maintain an active interest in the emerging cryptocurrency market. Even with the 65 percent decline in the value of the market since the start of 2018, Germans appear to be buoyed by bitcoin and other digital assets. Germany is already a crypto-friendly nation that doesn’t even tax small purchases made with bitcoin, treating them instead as legal tender.
Anonymity and Potential for High Investment Yield
Anonymity and high investment yields rank as the two most attractive propositions offered by digital currencies. The crypto market is incredibly volatile with wild price swings a ubiquitous part of the digital currency narrative. Thus, there is always the possibility of making huge gains, as well as catastrophic losses. Between November and mid-December 2017, the price of bitcoin tripled from $6,000 to $19,500. By February 2018, bitcoin prices had plunged below $6,000. Many other coins followed the same trajectory between November 2017 and February 2018.
How Demographics Affects Cryptocurrency Perception in Germany
A breakdown analysis of the survey throws up some interesting insights about how cryptos are viewed in Germany along gender and generational lines. For example, 60 percent of the female responders identified regulations as their reason for maintaining an interest in cryptos. Whereas, 56 percent of the male responders chose the possibility of earning huge profits as their incentive for being interested in the market. Only 51 percent of men and 36 percent of women chose regulations and high yield respectively.
Concerning age demographics, the younger generation seems to be abreast with the latest in the industry. People between 18 and 34 years of age indicated the most interest in digital currencies according to the study. In fact, more than half of survey participants in that age bracket declared excitement at the prospects and opportunities in the market. Six percent of them said that they had an investment in different coins while another 14 percent said they would probably do so in the coming months.
Many Germans Claim to Know Much About Cryptocurrency
An average of 20 percent of the survey participants claimed expert knowledge of the cryptocurrency market. However, experts like Thomas Mangel, the Postbank Chief Digital Officer is advising caution. Commenting on the survey, he said:
Due to the media hypes, many people overestimate their knowledge of the opportunities and risks of cryptocurrencies as an investment. Despite all the fascination, young investors should not lose sight of offers from the established banking system. Anyone who already makes an investment in securities as an investment should certainly not invest in cryptocurrencies because of the high risks involved. Because this type of investment is highly speculative.
Mangel also said people tend to overestimate their knowledge of cryptocurrencies especially in the area of risk. He also said people needed to educate themselves on the tax implications of cryptocurrency investments before jumping into the market. As part of the survey, Postbank added many critical warnings. The bank also offered cautionary nuggets to guide people through the still murky waters of the digital currency market.
What other countries do you think such high level of cryptocurrency awareness exists? Will Germany become a global leader in the cryptocurrency trading market? Let us know your views in the comment section below.
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