The popularity of cryptocurrencies like Bitcoin and Ethereum continue to be unaffected even though they have been hit hard by the recent price decline in the cryptocurrency market.
According to the Postbank Digital Study 2018 that took place between the end of February and the end of March (soon after the sharp price fall in digital currencies), 29 percent of Germans view cryptocurrency as an interesting investment.
Even though Bitcoin was the first cryptocurrency to launch in the crypto market, there are more than 1,500 crypto tokens today doing the rounds. There was a time when cryptocurrency rates kept increasing and setting new records. However, since the end of 2017, the price of bitcoin (most preferred cryptocurrency across the globe) has dropped by more than 65 percent.
This speaks of the huge price fluctuations that the cryptocurrency market experiences. According to Dr. Thomas Mangel, Postbank Chief Digital Officer, in spite of the high losses and obvious risks, Germans are very optimistic about this digital currency that has swept the world.
It is noteworthy that Germans are still interested in cryptocurrencies as a financial investment despite high losses and obvious risks. There is certainly a real risk that people will lose money just because they follow a hype.
Youth and financial independence is a criteria
The freedom or independence that regulatory financial systems offer including high returns seems most intriguing to Germans. Among those in the age group of 18 and 34, nearly one in two (46 percent) is interested in investing in cryptocurrency, in spite of negative reports.
The independence is especially very important to women who form 60 percent of the segment as compared to men who are only 51 percent.
Confidence in the cryptocurrency market
The media has covered every angle of cryptocurrency so much that many German citizens believe that they all that they have to know about this digital currency and the crypto market.
While 20 percent of Germans think they have average or above average knowledge of cryptocurrencies, 29 percent of 18- to 34-year-olds are willing to call themselves “crypto connoisseurs”.
There is an increase in interest in crypto tokens. Even the fluctuations in the cryptocurrency market do not bother Germans who are keen to invest in cryptocurrency.[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]