Bitcoin is available worldwide; you can use it as an investment or as a means of payment for goods and services.
There are online sites where you can trade bitcoin or buy them as a financial asset. The value is highly volatile, but it has climbed rapidly since 2015, mainly because of an increase in demand from China due to the yuan’s devaluation.
Bitcoin faces two threats: the risk of loss through hacking and the difficulty of replacing lost bitcoins. But despite the risks involved with it, more and more people are using bitcoin in Germany.
12 ways by which bitcoin in Germany has taken rise
- Germany’s 1% of the population invest in bitcoin, which comprises 20 Million individuals. This 1% is less than the expected 4%, but still, it contains 200000 people investing in bitcoins, out of which only 12000 Germans are investing at least €1000 to 10,000 Euros per month. Therefore, the total amount invested in bitcoins per year is expected to be over $200 million.
- Any government or bank does not regulate Bitcoins, but some laws govern the purchase and use of bitcoins. There has been the latest news about taxation on bitcoin in Germany, where it has been found out that they will be considered private money, and the bitcoin-related business will be taxed at 25%. This has kept the investors in a dilemma.
- Any physical assets do not back Bitcoins, but they are traded online through digital marketplaces where people can sell and buy bitcoins for real-world currencies like dollars or euros. So people who work with bitcoins, invest in them or use them to purchase goods are part of the bitcoin community.
- Bitcoins are traded at an exchange rate that fluctuates continuously 24 hours a day. This means that the value of one bitcoin can change drastically from one hour to another, with an overall trend of appreciation. At this point, bitcoins are mainly bought as investments rather than being used as currency to purchase goods and services
- Berlin-based company, bitcoin Deutschland AG, registered in Germany as a financial service provider, claims to be the ‘first regulated bitcoin trading platform in the European Union.’ This company also provides mobile wallets and bitcoin debit cards that can be used at ATMs or shops like regular debit cards.
- At the end of 2013, everyone expects to see more than 50 bitcoin companies in Berlin. This means that entrepreneurs and developers will be flocking to Berlin to give their support for bitcoins
- Mark Twain Bank offers a Visa-branded bitcoin debit card linked directly with users’ accounts, meaning they must first deposit euros into their account before buying bitcoins at the current exchange rate. Once the purchase is complete, users can then spend their bitcoin as euros anywhere Visa is accepted for payment
- The company Bitcoin Deutschland AG was founded by two German entrepreneurs who have thought to bring digital currencies into the legal framework
- As it has already been discussed that there are very few investors in Bitcoin in Germany, but due to few prominent investors like Micky Malka and Mark Karpeles, Germans have started investing more in Bitcoins. Learn more about oil trading.
- The government of Germany is quite interested in bitcoins as a massive rally was observed at the finance ministry as the whole event went unnoticed for almost four years now.
- Bitcoins allow users to partially conceal sensitive information such as account numbers and balances while at the same time enabling transparency for auditing purposes. This means even if a user loses their private key, they can still recover their bitcoins simply by identifying themselves with the public key and using it to sign a new transaction.
- Bitcoin can be used to make a payment without revealing your identity, which is one of the reasons bitcoin is gaining popularity in Germany and around the world. Also, it suits perfectly with solid privacy laws of Germans. Another reason for the rising interest of German people in Bitcoin is that its value has rapidly increased over the last few months.
Bitcoin is gaining momentum in Germany. It has gotten maximum attention from the government and banks in recent times, which augurs well for the bitcoin community regarding awareness about this new technology.