Lower bitcoin prices mainly affect younger investors
The price drop of the bitcoin has stopped in the last week, bitcoins are even worth a little more. But the price of the most popular crypto currency has still halved since the beginning of 2022. Young investors in particular will have lost money, according to a study by the Netherlands Authority for the Financial Markets (AFM). Of all young adults between the ages of 18 and 34, 16 percent have invested in cryptocurrencies. In comparison, only 3 percent of people over 55 invest in such coins. These are relatively low amounts. Roughly half of the investing young people invest less than 500 euros in crypto, yet 5 percent of this group has invested more than 10 thousand euros in coins such as bitcoin. Among investors between the ages of 45 and 55, there are more who invest such large amounts, about 17 percent. The fall in crypto prices is partly due to fears of recession. Because assets have been temporarily frozen at the major provider Celcius, investors are also afraid that more managers of crypto transactions will not be able to settle transactions.
The rise of crypto managers continues
Cryptocurrency declines have not deterred new platform managers. Despite the price declines, the number of providers of bitcoin and comparable coins in the Netherlands has increased further this year. According to the most recent count by De Nederlandsche Bank (DNB), there are 31 official providers of crypto services. At the beginning of this year there were 27. The great growth for providers seems to have come to an end. After DNB started the register in October 2020, many crypto providers have come forward. The registration with DNB only means that these companies comply with the money laundering laws. The companies are not checked by the Netherlands Authority for the Financial Markets to see whether consumer protection is in order.
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