A new survey has found that one in three Germans would consider cryptocurrencies such as Bitcoin as an investment option.
The study, conducted by German bank Postbank, interviewed a total of 3,100 Germans between February and March this year for its Postbank Digital Study 2018 – The Digital German and the Money. It looked at the developments that are emerging in the different areas of German life regarding digitisation in general and financial topics.
It found that despite cryptocurrencies experiencing a tough Q1, and what could be an equably tough Q2 to 2018, popularity among them doesn’t appear to have changed. The study revealed that a total of 29 percent of Germans see digital currencies as an interesting investment. Notably, it revealed that interest among younger generations – 18 to 34 – was especially evident, with 46 percent interested in cryptocurrencies regardless of negative reports.
“It is noteworthy that Germans are still interested in cryptocurrencies as a financial investment despite high losses and obvious risks,” said Dr. Thomas Mangel, Postbank Chief Digital Officer. “There is certainly a real risk that people will lose money just because they follow a hype.”
Compared to the average population, the research shows that young people have twice as much cryptocurrencies, at six percent. Not only that, but in the next 12 months, another 14 percent of 18- to 34-year-olds still want to grow digital currencies. Across all other age groups, this figure was only eight percent. However, Mangel adds that the younger generations ‘should not lose sight of offers from the established banking system.’
Interestingly, with media reports increasingly reporting on cryptocurrencies and the blockchain, with many central banks adding their opinions, Germans have concluded that they have a good level of knowledge on the industry due to what they have read. So much so, that 20 percent have deemed that they have a sound level of knowledge, whereas 18- to 34-year-olds have pegged that number at 29 percent.
According to Mangel, people often overestimate their knowledge on the risks and opportunities when it comes to cryptocurrency investing.
“For example, many would not know that profits from cryptocurrencies need to be fully taxed if they are not kept for at least a year,” the report states. “Above all, the risk of total loss, which does not exist for other investments in this form, is not given enough consideration. Anyone who would like to invest in cryptocurrencies, however, is advised to choose only a sum that they can do without.”
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