The quantity of Dutch people investing in digital currencies have increased to approximately 500 thousand in the past six months. According to Reg van Steen, a Kantar TNS researcher, the increase is nothing he has seen before. He states, “I can’t remember ever seeing anything like this”. Back in 2017, more than 130 thousand Dutch households were cryptocurrency owners. Their number now totals to more than 400 thousand. In a single household, more than one person was a cryptocurrency investor.
Van Steen calls the phenomenon “the band-wagon effect”. Most of the Dutch citizenry began their investment in cryptocurrency when its value started to rise. This prompted a lot of people to place investments as everyone was doing it. Van Steen added, “Your friends and neighbors do it, so you do too.” He goes on to describe the average demographic of a digital currency investor. Van Steen claims, “The average traditional investor is often an older man, with a higher education level and wealthy. You don’t see that with crypto coin investors. They are younger, even better educated, and there are more women among them”.
The Kantar TNS researcher states that two out of three crypto investors have an average age of 38, while conventional investors are 51 years old. Most have a level of HBO education or higher. More than 70 percent of the digital currency investors put in less than a thousand euros as their investment. Plus, less than a percentage put in an investment of more than 10 thousand euros. Cryptocurrencies take up 0.1 percent of the Netherlands’ savings. All in all, citizens of Netherlands placed 900 million euros of cryptocurrency investment. Last year’s peak saw these investments increase to 4 billion euros. However, the past month saw the value decrease to half its original value. Kantar’s records show that a mere quarter of digital currency investors may see profit.