Saturday 26 September 2020

Dutch go big on crypto currencies but volatility hits profits

Bitcoin mining. Photo: Depositphotos.com

At least 580,000 Dutch people have invested in crypto currencies such as bitcoin and Ethereum, but most put their money in just last year, according to a report by research group Kantar TNS.

Consumers have been tempted by the enormous rise in value and three-quarters of investors bought into the virtual currencies since the beginning of 2017.

In total, Kantar TNS says Dutch investors have put €900m into crypto cash, an investment worth €4bn when the currencies were at their height. Since then, however, the value has plunged again.

‘Around 25% of crypto currency owners are currently in profit but in August last year, 49% had boosted their investment,’ the research bureau said. ‘Given the volatility of the currencies, this could improve any second, or get worse.’

Two in three investors have at least a college degree and they have an average age of 38, making them considerably younger than traditional investors, the report showed.

Kantar TNS polled nearly 45,000 households to draw up the report.

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