Despite high price volatility, many German citizens are interested in investing in cryptocurrencies.
Twenty nine percent of Germans are interested in cryptocurrencies as a form of investment, Cointelegraph auf Deutsch reported Tuesday, May 29. German bank Postbank came to this conclusion after a survey of 3,100 Germans, which was conducted from the end of February to the end of March 2018.
When asked about why are they interested in crypto, 60 percent of women and 51 percent of men cited "independence from established financial systems" as an important factor. The possibility of high returns, on the other hand, especially attracts men: 56 percent against 36 percent of women. For every third potential cryptocurrency investor, anonymity is also important.
In terms of age, cryptocurrencies are particularly popular among 18-34 year olds. In this age group almost every second - 46 percent - are interested in crypto investing. Six percent of Germans between the ages of 18 and 34 have already invested, with another 14 percent planning to do so over the next twelve months.
Dr. Thomas Mangel, Head of Postbank's Digital Department, has said in a press release that the sharp price declines in recent months had apparently not impacted the popularity of cryptocurrencies. He believes that the reason for this is a lack of knowledge about opportunities and risks of cryptocurrencies as an investment. Dr. Thomas Mangel warns:
"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."
Many bankers have repeatedly warned against price fluctuations in recent months. For example, ECB Board Member Yves Mersch sees digital currencies as a threat to financial stability and calls for strict banking supervision. Also the wealth management head of the Deutsche Bank Markus Mueller criticized the high volatility of cryptocurrencies.