29 May Every Tenth Household in the Eurozone Holds Crypto (ECB Study)
A survey executed by the European Central Bank (ECB) estimated that 10% of the eurozone households are crypto HODLers. Wealthier families are more inclined toward purchasing bitcoin and altcoins.
Dutch Households Lead the Way
The ECB’s Consumer Expectation Survey determined that approximately one in ten family units in the following six European countries (Belgium, France, Germany, Italy, Spain, and the Netherlands) own cryptocurrencies. 37% of the HODLers admitted investing around $1,065 into the market, 29% had distributed between $1,065 and $5,350, while 13% allocated up to $10,700.
The residents of The Netherlands seem the most intrigued by the asset class since 14% of the local households have exposure. France is at the bottom with only 6%.
The rich proportion of the population finds the niche more attractive. The ECB estimated that young men, well-educated individuals, and those with high financial knowledge represent the biggest chunk of crypto investors:
“On average, young adult males and highly educated respondents were more likely to invest in crypto-assets in the countries surveyed. With regard to financial literacy, respondents who scored either at the top level or the bottom level in terms of financial literacy scores were highly likely to hold crypto-assets.”
On the other hand, the ECB warned that crypto is not a suitable investment tool for each investor. As such, it called upon the EU officials to impose rules on the sector “as a matter of urgency.”
What Stops People From Investing in Crypto?
The results from the ECB’s Consumer Expectation Survey displayed that the number of digital asset investors in the eurozone is not that high. Another study conducted by the online web platform CouponFollow could explain why many people still stand aside from the market.
42% of the 1,100 non-HODLers, which the company questioned, said they don’t understand the value of cryptocurrencies, while 39% are concerned about the enhanced volatility.
The assumption that crypto “seems like a scam” is supported by 35% of the participants. 31% admitted they have not jumped on the bandwagon due to security concerns, and 24% don’t know how to purchase digital assets.
Nonetheless, almost every fifth person has set up a crypto exchange mobile app but didn’t end up buying any coins. The top reasons why are “insufficient knowledge” of how to purchase, “worry over price fluctuations,” and “safety concerns.”
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