Young Germans Show Interest In Cryptocurrencies
Studies conducted in Germany and the US show that millennials prefer using cryptos rather than traditional currencies. However, regulation remains a key barrier towards the adoption of cryptos on a large scale.
Cryptocurrencies Gaining Popularity Among Millennials
A recent survey released by a German based firm indicates that over a quarter of young Germans are willing to put their money in cryptocurrencies. The poll was previously conducted and was released on Monday by German Consumer Centers. The organization is supported by government bodies organized at state levels. The non-profit organization aims to promote investor protection.
The centers are backed by the two Germany Federal states. The centers commissioned the survey through the internet. The findings of the study were conducted among 1000 Germans aged between 18 and 39.
From the outcome, 55% stated that they are aware of digital currencies. However, about 77% of Germans with knowledge about cryptos stated they might not invest in the sector..
As far as cryptocurrency perceptions go, on the risk element, 70% pointed out that crypto trading was a risky affair. The researchers said that there was a correlation between risk acceptance and age. 54% of respondents aged between 30-39 view cryptos as dangerous investments. On the other hand, 28% of participants aged between 18 - 29 stated that they are likely to put money in cryptos.
German Government View On Cryptocurrencies
The survey further went ahead to provide a warning regarding risks that come with investing in cryptocurrencies. Wolf Brandes from Consumer Center stated that cryptos are risky due to a lack of clear regulations and the unavailability of investor protection mechanisms. Brandes stand towards cryptos is similar to the one held by the German government.
About two months ago, Finance Minister Olaf Scholz said that cryptos do not have a chance of replacing traditional currency. He noted that cryptos lack any economic significance. Olaf went ahead to liken cryptos to the tulip fever witnessed in Holland during the 17th century.
US Millennials Crypto Preferences
Similar polls to determine cryptocurrency acceptance have been carried out in the US. Recently, YouGov Omnibus released a survey that indicated that young people in the US are interested in cryptos. Out of the respondents, 36% pointed out that they prefer cryptos to the dollar. Another survey was conducted by Clovr, a blockchain analytics company. The firm learned that investments in cryptos are more common among millennial males.