Although cryptocurrencies have been infamous in recent times due to their waning prices, German citizens remain unfazed and continue to see the cryptographic form of money as an “interesting investment.”
Generation Y Most Interested
A research effort by Postbank, a major German retail bank, concluded that 29 percent of Germans are fascinated with digital currencies – mostly due to their high returns and partly for the independent financial system they aim to create.
Titled Postbank Digital Study 2018, the research collated responses of 3,900 German citizens, from February to March of 2018. Interestingly, the study was conducted immediately after the sharp price decline in the asset class, which helps omit overzealous responses.
Furthermore, the study found out that younger Germans, in the age group 18 and 34, were more optimistic for the future of cryptocurrencies compared to their peers, with nearly one in two people (46 percent) expressing an interest.
Berlin, Germany: The city is at the forefront of technological advancements
The results provide insight into how younger generations perceive digital assets, as the incoming demographic would drive cryptocurrency adoption in the future.
Postbank’s Chief Digital Officer, Dr. Thomas Mangel, stated:
“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.”
Interesting Findings Noted
The study shed light on several factors, some of which have not been explored previously. As per results, women displayed an interest in cryptocurrencies based on the decentralized financial system they aim to create, while men are mostly lured by “return opportunities.”
A total of 60 percent women expressed the need of an “independent established financial system,” opposed to 51 percent of men. The prospect of gains did not attract women, with only 36 percent interested in that aspect opposed to the 56 percent of men.
Have decided to stop responding to "women in blockchain" events, initiatives, and awards.
Ladies, this isn't weight-lifting or track sprints. Unlike in those events, women are perfectly able to compete with men as it pertains to the future of money.#Female. Not handicapped.
— Amanda B. Johnson (@AmandaB_Johnson) April 6, 2018
Additionally, anonymity was deemed an important factor, with 33 percent of respondents voting for this element as the most relevant aspect regarding digital assets adoption. A fifth of test participants voted for a rather uncanny reason for adopting digital assets – such as the “thrills” and the “gold digger feeling” of investing in a relatively new form of digital investment.
Germans Reportedly Not Facing Epistemic Crisis
The results of the study indicate that many Germans are under the impression of being familiar with cryptocurrencies. This confidence comes in part from reports and daily mainstream media coverage.
A total of 20 percent of participants claimed to have a “good or very good knowledge of cryptocurrencies,” with 29 percent of 18 to 34-year-olds calling themselves “crypto connoisseurs.” Dr.Mangel explained:
“Due to the media hypes, many people overestimate their knowledge about the opportunities and risks of cryptocurrencies as an investment.”
For example, many investors are not conversant with tax laws and do not have enough knowledge about risk management practices. Furthermore, interested parties need to realize that the digital asset class carries the most risk and probability of plummeting to zero in a short span of time, in contrast to other investment types.