Is Crypto Still An Investment Opportunity?
As most cryptocurrencies have been on somewhat of a downturn over the past six months or so, it seems surprising that many people still seem to view them as a worthwhile investment opportunity.
A survey conducted by Postbank, a German retail bank, has highlighted that almost 30% of Germans believe cryptocurrencies are a really desirable opportunity for investment. This news is in agreement with a report from the South Korea Financial Investors Protection Foundation, which illustrated that the vast majority of 20-year-olds would rather invest in cryptocurrencies than traditional financial investments, like stocks and shares.
Postbank Digital Study 2018
The Postbank survey interviewed 3,100 individuals in February and March 2018. The results showed:
– 50% of people aged between and 18 and 34 had a deep interest in cryptocurrencies, with 14% of these individuals expressing a wish to buy or mine them within the next 12 months. The 18 to 34 year age group accounted for 46% of the total number of individuals surveyed, but do only comprise 8% of the total German population.
Some additional survey results were that:
– 60% of the women polled believe that the “independence of established financial systems” is important, opposed to 51% of men.
– The likelihood of higher profits from investing in cryptocurrencies appeals to 56% of the men surveyed, compared to just 36% of women.
– 39% of men are in favour of digital currencies due to their relative anonymity, when compared to traditional investments, opposed to 26% of the women surveyed.
Postbank were fairly surprised by the results of their study, given the fact that cryptocurrencies have been spiralling downwards since about December 2017 and feel this is due to the high levels of hype involved in the marketing and promotion of these currencies.
Here in the UK, bitcoin trading frenzy reached its peak in December 2017, when the cryptocurrency price peaked at around $19,000. Some individuals were even taking out mortgages to pay for their investments, by way of credit cards and equity lines. With severe price drops of 40% through March 2018, their investment is not looking such a good buy at present.