4. Crypto users are satisfied with their investment
It is exciting to see that three quarters of crypto users are satisfied with their investment. The majority of investors (71%) say that less than a fifth of their investment portfolio is dedicated to buying/trading cryptocurrencies. Only 5% invest exclusively in crypto.
How satisfied Germans are with their investment in cryptocurrencies
In a European comparison, Germany is in the middle. In Spain and Italy, crypto users are on average somewhat less satisfied with their investment, while in France 70% are satisfied or very satisfied.
5. Making profits is not the only motivation
Users cite the following as the main reasons for investing:
I can make a profit even if it is risky 57%
I can be part of something innovative and alternative 48%
Decentralized philosophy of the system (no authority or institution that decides on the value of the currency) 45%
I can break away from the regular banking system 38%
Fiduciary currencies such as the Euro or the Dollar, known as FIAT, are regulated by central banks. Cryptocurrencies, on the other hand, are not subject to validation by a single institution but by the members of the network, i.e. peer-to-peer validation.
When a transaction is made, it is the users, called "miners", who validate it. In exchange for their participation in this process, they receive a reward in the form of tokens that can be exchanged for cryptocurrencies. It is this aspect of alternative financial validation that has particularly favored the commitment of Germans who have chosen to invest in cryptocurrencies.
In addition to their prospects for profits and interest in an innovative solution, many mention that they are attracted to the philosophy of cryptocurrencies and the alternative they offer to the traditional banking system.
Twice as many are interested in crypto
Even though usage figures are still low, there is great interest in the digital currency. 33% say they do not yet own any crypto, but plan to buy it in the future. Half (52%) of those interested plan to buy cryptocurrencies in the next year.
These three main reasons are currently preventing people from investing in cryptocurrencies:
Lack of knowledge about cryptocurrencies 54%
The risk of fluctuations in value 48%
Worry that cryptocurrencies might disappear (governments banning them, people losing interest in them, etc.) 38%
Cryptocurrencies are a complicated topic that requires a lot of investigation and hardly any market is as susceptible to fluctuations as the crypto market. Highly volatile and therefore unsafe forms of investment offer a great opportunity for high profits, but investors must also always expect setbacks. Between April and July this year, the value of Bitcoin fell by almost 50% . More and more governments want to regulate cryptocurrencies. The list of countries (including Vietnam, Bolivia, Pakistan) in which the digital currency is banned is growing. China also banned crypto exchanges in September. However, cryptocurrencies are legally recognized and legal in 111 countries, including Germany.
Crypto users and interested parties want to make profits
The main reason given for investing in cryptocurrencies is to try to make a profit, even if this is unpredictable. 35% want to buy goods with the currency. More and more companies are now accepting the digital currency for payment. These include Microsoft, Mozilla, Dell, Expedia, Lieferando, WordPress and numerous airlines.
But you can also pay offline in restaurants and shops with Bitcoins. To do this, a QR code is generated with the invoice, which can be scanned with the cell phone camera. The corresponding amount is then sent to the recipient's Bitcoin address. The Bitcoinkiez website lists shops in Berlin that accept Bitcoins as a means of payment.
Introducing cryptocurrency as a payment method in your business could help improve the customer italy telegram data experience and expand your customer base. However, there are some hurdles involved in adopting it. To analyze the impact of introducing cryptocurrency on your payment options, it is important to first compare the use of this method with traditional methods. Many payment processing software packages allow you to create reports and analyses on your customers' behavior regarding preferred payment options.
payment services 35%
trading platforms 26%
Financial services and De-Fi (decentralized financial services) 20%
Software and hardware 19%
clothing 17%
Flights and hotels 16%
It remains to be seen
The study suggests that although Germans are slower to adopt cryptocurrencies than other European countries, they are showing interest in investing. This could have a significant impact on how consumers pay for products and services in the future. SMEs need to keep an eye on developments and the needs of their customers and be ready to adapt their business accordingly. But is risk a potential barrier? That is what the next part of our series looks at. How much trust do Germans have in crypto compared to traditional banking methods and what is the future of money?