A survey by the European Central Bank (ECB) estimated that 10% of households in the Eurozone are crypto HODLers. Wealthier families are more likely to buy bitcoins and altcoins.
Dutch households lead the way
The ECB survey on consumer expectations determined that approximately one in ten family units in the following six European countries (Belgium, France, Germany, Italy, Spain and the Netherlands) owns cryptocurrencies. 37% of HODLers admitted to having invested around $1,065 in the market, 29% had distributed between $1,065 and $5,350, while 13% allocated up to $10,700.
Residents of the Netherlands seem the most intrigued by the asset class as 14% of local households are exposed to it. France is at the back of the pack with only 6%.
The rich part of the population finds the niche more attractive. The ECB has estimated that young men, well-educated people, and those with high financial literacy make up the largest portion of crypto investors:
“On average, young adult males and highly educated respondents were more likely to invest in cryptoassets in the countries surveyed. When it comes to financial literacy, respondents who scored at the top or the bottom in terms of financial literacy scores were very likely to hold cryptoassets.
On the other hand, the ECB has warned that crypto is not a suitable investment tool for every investor. As such, he called on EU officials to impose rules on the sector “as a matter of urgency”.
What is stopping people from investing in crypto?
The results of the ECB’s Consumer Expectations Survey showed that the number of investors in digital assets in the Eurozone is not that high. Another study conducted by the online web platform CouponFollow might explain why many people still stay away from the market.
42% of 1,100 non-HODLers, surveyed by the company, said they don’t understand the value of cryptocurrencies, while 39% worry regarding increased volatility.
The hypothesis that crypto “looks like a scam” is supported by 35% of participants. 31% admitted they hadn’t jumped on the bandwagon due to security concerns, and 24% didn’t know how to buy digital assets.
Nonetheless, almost one in five people set up a crypto exchange mobile app but ultimately did not buy any coins. The main reasons are ‘insufficient knowledge’ of how to buy, ‘concern regarding price fluctuations’ and ‘security concerns’.
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