New research commissioned by global cryptocurrency specialist Luno has revealed that nearly half (47%) of European countries are still sceptical about the profitability and safety of cryptocurrencies. This contrasts with nearly 80% of those in emerging markets outside of Europe are more optimistic about the profitability of cryptocurrencies like Bitcoin and Ethereum.
Cryptocurrencies are attracting interest from investors outside of Europe, with more than 8 of 10 (82%) people in emerging markets purchasing crypto solely to invest. This is compared to only 58% of Europeans who have invested in cryptocurrencies to boost their bank balance, and over a quarter (29%) use cryptocurrencies solely to shop online.
However, cryptocurrencies are fulfilling their mission to become the future of payments, with 29% of emerging markets and 21% of Europeans having already received cryptocurrencies as a form of payment. Part of this is down to the fact that currencies in many emerging economies suffer from systemic problems, including export restrictions, inflation and poor payments infrastructure from banks.
Why Europeans are skeptical about cryptocurrencies
Europeans are showing less confidence in the safety of cryptocurrencies compared to emerging markets. In the long term, only a third believe that cryptocurrencies are a safe investment compared to over two-thirds (69%) of those in emerging markets.
Although confidence is low in European markets, more than 8 out of 10 (84%) of consumers that don’t own cryptocurrencies are interested in owning crypto in the near future.
Europeans and emerging markets are in agreement over what could influence their opinion on cryptocurrencies, with over a third (37%) of Europeans and nearly half (44%) of emerging markets agreeing that an increase in price stability would have a positive impact on their view of cryptocurrencies.
Along with this, 43% of Europeans and 48% of emerging markets investors would like to see less risk of losing money, and under a third would change their opinion of crypto if governments took a positive outlook on the cryptosphere. There continue to be substantial concerns about the infrastructure underlying many cryptocurrency trading platforms.
The complicity of cryptocurrencies is also a stumbling block for consumers with just under half of Europeans (48%) and emerging markets investors (49%) stating that using crypto is complicated.
Christian Zeiler, GM Europe from Luno said:
“It’s really interesting to see that even in times of uncertainty in the crypto market, consumers that don’t own any cryptocurrency are looking to get involved in the crypto space. I still think there is a long way to go to get these consumers to buy cryptocurrency but we are leading the way in educating the general public in the benefits of cryptocurrencies.”