Young Germans Consider Crypto Investment Attractive Despite Value Decline

While institutional investors are still crossing their arms and observing the boom of the crypto market, a lot of young people are diving in, hoping to take a piece of the profit. In a recent report by Cointelegraph auf Deutsch, 29 percent of Germans expressed interest in investing in the crypto industry.

The report was based on the survey of the German financial institution Postbank, where they asked 3,100 participants varying questions regarding cryptocurrency. The examination was made in the latter part of February until the end of March this year.

When the survey asked the participants what made them consider cryptocurrency as a form of investment, the majority of both genders answered it’s because of its “independence from established financial systems.” Anonymity was another factor that made them gravitate towards this market.

The survey saw that cryptocurrencies are particularly attractive to people between 18 to 34 years old. And within this age group, 6 percent have already invested, while 14 percent are considering to join in the next 12 months.

Dr. Thomas Mangel, head of Postbank’s Digital Department, observed that the dipping of the crypto market in recent months seems to have no effect on the popularity of digital currencies. He thinks that lack of information regarding the volatility of the crypto industry is the cause of this.

"Despite all the fascination, young investors should not lose sight of offers from the established banking system,” Dr. Mangel warned. “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,” he added.

There’s also the matter of the lack of regulation on cryptocurrency. Because it’s a relatively new player in the mainstream market, the legal groundwork governing it is similarly young. As such, illicit activities like market manipulation is a possibility.

Indeed, this was the sentiment of a cryptoanalyst who said that miners and other wealthy entities in the digital currency market hold a lot of power. In the world of stock market, groups like these are constantly subjected to scrutiny and additional restrictions, but because regulation has yet to be fully placed, there are no such constraints in the crypto industry.