New research: Younger Germans drawn to cryptocurrencies

More than a quarter of younger Germans are ready to buy cryptocurrencies, according to research issued by the German Consumer Centers of Hesse and Saxony. Coin Rivet brings together leading industry players to discuss what this means for the broader blockchain landscape.

Craig McGregor, Co-founder and CEO of DSTOQ: “This shift in Germany towards an increased interest in crypto among younger people is indicative of wider trends we are seeing globally.  While we have seen huge growth in the sector, the next wave of investment and enthusiasm will be harder won.

In this, I believe, decentralised exchanges have an important role to play as younger people, in particular, value transparency. By removing the need for a third party and intermediaries, such as banks or centralised exchanges, investors have complete control over their transactions. The result is increased security and control – which for first time for investors is of utmost importance. The survey released this week shows figures indicating that 70% of participants find crypto trading ‘risky’ or ‘very risky,’ but it doesn’t necessarily need to be this way. The solution, which is available for all to use right now is the decentralised exchange.”

“It is not surprising that a demographic whose lives have been characterised by smartphones, internet, and social media, see the attractive functionality cryptocurrency provides as an instant and decentralised means of transferring value”

Frank Wagner, Co-founder and CEO of INVAO: “We see these results showing that a majority of Germans have reservations around investing in crypto as an opportunity for those projects that are regulatory compliant and are similarly attractive to real world investors. Only when we have sustainable projects offering real investment opportunities in asset pools and other digital assets will be see a tangible surge in interest.

Regulation is intrinsic to this process, shaping the landscape in which we operate. Companies must be agile and dynamic in adapting to changing regulation and in the face of consumer demand. Taking Germany as an example, we must ensure that fewer people feel it is a risk to participate in this sector. Elements such as transparency, openness, real rewards and security are all essential to successfully attracting investors. These survey results show that we have a long distance to travel, but they also show the huge opportunity there is.”

Thomas Schouten, Head of Marketing at Lisk: “The survey is evidence that global leaders and innovators of the future are aware of the potential the crypto space has to offer. It is not surprising that a demographic whose lives have been characterised by smartphones, internet, and social media, see the attractive functionality cryptocurrency provides as an instant and decentralised means of transferring value.

Again, however, the survey highlights continued ambiguity in public perception of cryptocurrency and the utility of blockchain technology. Older demographics continue to perceive crypto investment as too “risky”, with just over 50 percent of people aged 30 to 39 adverse to any investment. Meanwhile, profitability is still a driving incentive for young people looking to become involved in cryptocurrency, as cited by about a quarter of those interested in investing. I think it’s clear we, as a community, need to work harder to educate people of the massive potential blockchain technology offers. Cryptocurrency in itself is only the tip of the iceberg.”