German retail bank Postbank has reported that according to a recent survey, 29% of Germans believe that cryptocurrency is a desirable investment opportunity.
The results from Postbank Digital Study 2018 were announced after 3,100 Germans were interviewed from the end of February to the end of March this year.
One in two of the younger generation, between the ages of 18 to 34, are interested in cryptocurrency investment. This accounts for 46% of the total surveyed individuals. Furthermore, 14% of these people want to buy or mine cryptocurrencies in the next year.
However, despite immense interest in the crypto sector, this demographic only makes up 8% of the total population. Dr. Thomas Mangel, Postbank Chief Digital Officer, said that youngsters shouldn’t concentrate completely on cryptocurrencies since this “type of investment is highly speculative”.
Apart from age, the study also focused on gender by observing three different factors. Firstly, 60% of women consider the “independence of established financial systems” more important than 51% of men. Secondly, higher returns from cryptocurrency investment attract 56% men as compared to 36% women. Lastly, 39% of men are in favor of the anonymity provided by digital currencies, while only 26% of women think it is important. Out of this group, one in five people state that they are simple thrilled to become a part of a new form of investment.
The survey was conducted at a time when bitcoin and other cryptocurrencies were experiencing a free fall. This is why the results in favor of these cryptocurrencies were a surprise to the bank. Mangel said that media is responsible for hyping this phenomenon, which in turn forces people to ignore the risks involved with buying these currencies. For instance, 20% of Germans believe that they are well informed in this topic by simply reading about it on social media. Additionally, 29% of 18-34 year olds think that they are crypto experts.
However, majority of people are unaware that bitcoin gains are subject to taxation in different countries. “Due to the media hypes, many people overestimate their knowledge of the opportunities and risks of cryptocurrencies as an investment,” concluded Mangel.
In March, South Korea Financial Investors Protection Foundation also published results of a survey that showed that majority of 20-year-olds preferred investing in cryptocurrencies to conventional financial instruments such as stocks, CDs and bonds.