Forty-four percent of Germans are motivated to invest in cryptocurrencies, according to a report published by KuCoin; what do the experts think?
The richest country in Europe is getting closer to cryptocurrencies. That is what a report from KuCoin says, sharing some optimistic statistics about the future of cryptocurrencies in Germany.
Notably, 44% of Germans are “motivated to invest in cryptocurrencies to be part of the ‘future of finance'”; while more than a third, “37% of German investors have been trading cryptocurrencies for more than a year.”
Cointelegraph had already picked up the impressive and productive year for cryptocurrencies in Germany, but it is crucial to check the sentiment towards cryptocurrencies on the ground.
What the Experts Say
Johnny Lyu, CEO of KuCoin – the company publishing the report – explained to Cointelegraph the situation of German crypto investors, “Cryptocurrencies are very popular among supporters of the accumulation strategy, especially among the younger generations. They prefer to save for retirement on their own and diversify their savings by using cryptocurrencies.”
Lyu warns that, “despite the high demand for cryptocurrencies among Germans, the country still does not have specific regulations that clearly regulate the use of digital money.”
Indeed, although Germany was the first country “to recognize that Bitcoins are ‘units of value’ and that they can be classified as a ‘financial instrument,'” according to the report. So far, the local regulator has only had “some success in regulating cryptocurrencies.”
For Florian Döhnert-Breyer, CEO of F5 Crypto: “Germany is a role model for other countries in the European Union, whose population is generally more open to long-term investments.” Furthermore, “as the largest country in the EU with a notoriously risk-averse view of financial assets, Germany has a special role to play.” He further claims that, “The high number of women interested in cryptocurrencies is particularly encouraging, since this target group is, on average, less active in the financial market (for example, the stock market).”
The report states that, “69% of cryptocurrency investors are men, while women make up 53% of crypto hobbyists,” which, according to Döhnert-Breyer, shows that women, in terms of finance, are more interested in the future than in the past.
Katharina Gehra, CEO and co-founder of Immutable Insight, also notices the changing demographics of cryptocurrency investors, “young people display a more self-directed, equity-focused investment style and are generally significantly more aware of the risks of inflation in particular. However, the future remains uncertain, especially as regards the regulatory environment, as “BaFin never tires of warning about the risks.”
Döhnert-Breyer is confident that Germany will continue with crypto-friendly legislation, while recent actions by BaFin, such as the approval of Bitcoin-based custody licenses and security tokens, are promising signs. Germany may not be on the same level “compared to Switzerland or the UK,” Gehra says, but “there is some movement on the legislative side.”
Lyu concluded by stating that Germany, “has laid a good foundation for creating a favorable landscape for cryptocurrency users.” It is worth recalling that in 2021 Germany approved special funds to invest in digital assets, which was its first step to accept cryptocurrency investments.
By Audy Castaneda
