Dutch prefer to HODL crypto assets: report
Almost three quarters of Dutch cryptocurrency holders buy coins in order to make a long-term return.
The Dutch have been captivated by cryptocurrencies. New research reveals that, despite the huge market price correction triggered in late December, the number of crypto holders in The Netherlands haven’t faltered.
Investigative research, carried out by Cryptovaluta Monitor and released this week by Dutch market research company Multiscope, found that approximately 865,000 Dutch (6.7%) still own one or more cryptocurrencies. These digital currency ownership figures haven’t changed since mid-January.
Cryptovaluta discovered these crypto characteristics by surveying more than 7,000 Dutch crypto holders aged 18 and older during the week of January 16 and over 5,000 individuals during the week of February 12, 2018.
In mid-January, three quarters (75%) of the crypto owners interviewed were still profitable. However, in mid-February the number of crypto holders still generating a positive return had slipped to just over half (51%).
Although most crypto coins have shed significant value in the last few months, market participation in Holland remains constant. This is because the Dutch “do not put large amounts in cryptocurrencies”, researchers said.
The average Dutch crypto holder invests just €200 (approximately US$250) into virtual currencies.
“It also appears that no major risks are taken. Six in ten bought bitcoins or other digital coins with money from their current account. Less than 1% invested in cryptocurrency with borrowed money,” the research found.
Additionally, almost three quarters (71%) of Dutch crypto holders buy coins to “make a long-term return”.
“This group is also known as ‘hodlers’. The low investment amount and the fact that they are there for the long term is a possible explanation why few owners left during the decline,” according to the research.
HODL (Hold On for Dear Life) has become a recurring theme on social media among many crypto traders.
The Dutch also have very high expectations of future returns for cryptocurrencies. However, the research found that this has been dampened considerably by recent price decreases. For example, in January owners aimed for an 11x return on their initial investment. In February, this intention slipped to 6x their deposited amount.
Elsewhere internationally, following this week’s pre-sale launch of the first ever state-issued cryptocurrency token, Venezuela’s government has announced it will introduce a second, mineral-backed token, petro gold.
You can learn all about different exchanges, understand exactly how to buy and sell cryptocurrencies, calculate your taxes, discover digital wallets to hold assets and explore a list of all the alternative coins on the market.
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