Eager to invest

Bitcoin fuels boom in private crypto investments

87% of respondents plan to make further crypto purchases in the next twelve months.

(Bild: Jaruwan Jaiyangyuen)

The steady rise in the price of Bitcoin and other cryptocurrencies is fueling the boom among private crypto investors. A large majority of them are planning to invest more money in digital money this year.

This was the result of a survey of 2,500 private investors in the USA, Germany, Saudi Arabia, the United Arab Emirates and Turkey conducted by management consultants Strategy&. In each country, 500 people with cryptocurrencies in their private portfolios were surveyed in January and February.

On average across all five countries, over 87% of respondents plan to make further crypto purchases in the next twelve months. By comparison, German investors are more cautious: 75% said that they want to invest even more money in digital money. According to the survey, just under half of respondents in Germany have invested between one and ten thousand euros in Bitcoin and Co. and another good fifth have invested less than a thousand euros.

Multiplication of the Bitcoin price
The price of a Bitcoin has increased around twentyfold over the past five years: from less than 5,000 euros after a slump in the first phase of the coronavirus pandemic in spring 2020 to currently over 92,000 euros or 97,000 dollars. Last fall, the price fell temporarily before exceeding the 100,000 dollar threshold in December.

The management consultants point out that the market is still extremely volatile. The majority of investors surveyed by Strategy& believe that the Bitcoin price will continue to rise sharply. The German respondents hope for a price of 136,000 dollars by the end of the year.

Purely speculative?
Economists and managers in the financial sector are still debating whether the crypto boom is a pure speculative bubble: unlike shares, crypto investments are not matched by an equivalent value in the form of a company selling products or services. And unlike the euro or a national currency, there is no state central bank behind the virtual money.