The popularity of cryptocurrencies has been increasing even after the sharp decline in the price in the first quarter of 2018. More and more people are investing in the digital currency despite the negative feedback from different sources. After the major acceptance of crypto in US consumer market digital currency is also getting accepted in other countries as well Like Germany. According to a recent survey, conducted by German Bank Postbank, more and more people are accepting the digital currencies despite all the potential risks involved. The survey stated that one in every three Germans is investing in crypto which means almost twenty-nine percent of Germans are considering to invest in digital currency, The survey was conducted over a period of one month in the first quarter of 2018 with 3100 Germans.
Why investing in Crypto
According to the survey when people were asked about the reason they are investing in Crypto despite all the speculated risks involved people had many factors that encourages them to invest in cryptocurrencies. The most common and important factors are the following:
- 60 percent of women and over 50 percent of men said the freedom from the already established financial system.
- 56 percent of men and 36 percent of women see the possibility of high returns.
- Another very important factor for German men and women to invest in crypto is anonymity and transparency.
People from the age 18-34 years old Germans are either interested in investing in cryptocurrency in next twelve months or have already invested.
On the other hand Dr. Thomas Mangel, Head of Postbank’s Digital Department, has said that people have lack of knowledge about 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 Dr Thomas Mangel Head of Postbank’s Digital Department
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.