The growth of the investments in cryptocurrencies in the Netherlands multiplies a lot last year. Many interested people entered the cryptocurrency market trying to triplicate their investments quickly. Unfortunately, this was not possible due to the correction of the market at the beginning of this year.
The number of families who owned cryptocurrencies in the Netherlands went up from 135 thousand in August last year to 490 thousand in February this year. The data was collected by an agency called Kantar TNS. The agency surveyed more than 44 thousand Dutch people during the research.
A large number of these people started investing in cryptocurrencies during last year, hoping to multiply the investment quickly thanks to the considerable growth of the main cryptocurrencies during last year. For example, Bitcoin was worth 900 dollars in January, 2017 and reached its historical maximum of 20,000 dollars in December last year, according to CoinMarketCap.
This beginning of this year was not good for the cryptocurrency market. The total market capitalization fell below 500 billion dollars, which severely affected the people who were investing in cryptocurrencies during their growth. Nevertheless, the overall picture is not looking so bad for these investors, since the majority of them were cautious when it comes to the amount of money invested. Only 24% of the surveyed people confirmed they invested more than one thousand euros. It seems the investing in cryptocurrencies does not have any bad influence on the Dutch economy. Only 0.1% of the savings and investments of the families in the country.
Out of all the investments, only 25% earner money, which is a major change since August last year when this percentage was 49. However, due to the high volatility that characterises the cryptocurrency market, the numbers could change at any moment, according to Kantar TNS. These fluctuations are what attracted may investors in the first place in the last several months. Right now, the cryptocurrency market seems to be showing signs of recovery.
The cryptocurrency market attracted a new profile of investors, according to the study. While the traditional investor is 51 years old on average, the new investors are 38 years old on average. Women are the dominant gender when it comes to investing in cryptocurrencies in the Netherlands. This could present a “democratization of the investment”, according to Reg Van Steen, a representative from Kantar TNS, the agency behind the research.