Third of German Millennials Consider Cryptocurrency Investment
The survey highlights that the majority of 3000-plus respondents believe the potential rewards will outweigh the potential risks.
One in three German millennials, with currently no exposure to cryptocurrencies, would consider including the digital asset class into their investment portfolios, according to research published by German version of the industry news outlet Cointelegraph.
The survey, carried out by German bank Postbank, reveals that 6 percent of those aged 18-34 year already have invested in a cryptocurrecy, while 14 percent are definitely planning to invest next year, shunning more traditional investments such as shares, bonds and property.
A further 46 percent are seriously considering investing in a digital currency by the end of 2018, the study found.
The poll of 3,100 Germans, across a broad demographic, also found despite a growing sense that cryptocurrency regulation is now inevitable, 60 percent of women and 51 percent of men are citing “independence from established financial systems” as an important factor.
The survey also highlights that the majority of 3000-plus respondents believe that despite ongoing volatility of cryptocurrencies, the potential rewards will outweigh the potential risks.
The free fall in cryptocurrency prices since the beginning of 2018, however, have encouraged critics to warn again that the virtual asset is a
bubble and that investors should stay away. Earlier in November, German’s Federal Financial Supervisory Authority (BaFin) has become the latest European authority to join this camp, warning investors of the risks associated with ICOs.
An increasing general awareness of cryptocurrencies and how they work are perhaps the main reasons why such a high percentage of people are now open to looking at the possibilities of
crypto for their portfolios.
Head of Postbank’s Digital Department said that millenials are turning to cryptocurrencies because they feel left behind by more traditional investments.
He added: “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.”