Börse Express – Deloitte Crypto Survey: Crisis-ridden crypto market divides Austrian investor groups into two camps

Payment freezes, price drops, insolvencies – the crypto market has grabbed headlines worldwide in recent months. But what about the popularity of this form of investment in Austria? According to a recent study by the consulting firm Deloitte, two camps have formed: on the one hand, investors who are already investing in digital assets remain calm and see a great potential for profit in the risky nature of crypto-investments. On the other hand, people without crypto experience prefer to stay away from it in the future. In particular, allegations of fraud and cyber threats, but also the poor climate balance, damage the image of crypto assets.

With the recent crash of the crypto exchange FTX, cryptos have once again made negative headlines. But what about the market in Austria? As part of the Deloitte Crypto Survey in October 2022, around 190 people from the business community across the country, mainly at management level, were asked for their assessment of the topic. According to the study, Bitcoin and Co. established itself in Austria in spite of all prophecies of doom. “Crypto investing has long had the image of short-term hype. While 32% of respondents still see it this way, for the majority of 57% cryptoassets are a serious form of investment,” explains Maurizia Anderle-Hauke, Counsel and Head of Banking & Finance Regulatory at Deloitte Legal.

Crypto fans continue to invest

More than half of the survey participants are currently addicted to crypto assets. Negative headlines and price drops don’t stop this: Over 90% of current investors want to continue investing in digital assets in the future. In contrast, the people who have not yet made any crypto investments are very skeptical. Here, 73% consider their entry into the crypto market unlikely in the next five years.

“The crypto market is currently in a state of upheaval. Investors are divided on whether this roller coaster ride is worthwhile. Crypto investments seem to be made according to the motto ‘all or nothing’ – either you believe in the added value of digital assets. or you jump never up,” adds Johanna Rizzi, tax consultant at Deloitte Austria.

Lack of sustainability damages image

The many challenges associated with crypto investments are to blame for the fear of contact. According to the investors surveyed, allegations of fraud (49%) and cyber threats (41%) are perceived as problematic. The sustainability factor also plays a big role. “The high energy consumption in the production of crypto-assets – keyword mining – is a problem for 33% of those questioned. Especially against the background of the global climate and energy crisis, this aspect does not play into the picture of crypto-assets”, confirms Johanna Rizzi.

The advantage lies in the risk

Three-quarters of respondents see a significantly higher investment risk in crypto-investments compared to more classic forms of investment such as securities or real estate. But it is precisely in this risky nature that the appeal of crypto investments lies. According to the Deloitte survey, the capital gains made possible by the increased risk speak especially for an investment in cryptoassets: 78% of the survey participants mention the attractive return as the main motivation, the speculative type of investment is decisive for 48%. .

In order to create a better basis for confidence in the market, half of the investors surveyed are in favor of tighter regulation. “The global crypto market will be much more regulated in the future. The FTX crash shows once again the need for such regulations,” emphasizes lawyer Maurizia Anderle-Hauke. “Planned and reliable action on the part of the regulatory authorities is essential for success – because despite of all risk appetite, investors need a solid basis for decision-making.”

To download:

Deloitte Crypto Survey: https://deloi.tt/3Ey1E5f

Photo Maurizia Anderle-Hauke ​​​​Credits Deloitte/feelimage: https://deloi.tt/3ERrIZt

Photo Johanna Rizzi Credits Deloitte/feelimage: https://deloi.tt/3VmYvMw

Deloitte Austria is the leading provider of professional services. With more than 1,500 employees spread over 13 locations, companies and institutions are looked after in the areas of auditing, tax advice, consultancy, financial advice and risk advice. Clients benefit from extensive expertise and in-depth industry insight. Deloitte Legal and Deloitte Digital complete the comprehensive range of services. Deloitte sees itself as a smart source of inspiration for Austria as a business location. Deloitte’s Future Foundation sets initiatives in the community and social area. As an employer, Deloitte aims to be the “best place to work”. More at www.deloitte.at

Deloitte refers to Deloitte Touche Tohmatsu Limited (“DTTL”), its global network of member firms and their affiliates within the “Deloitte Organization”. DTTL (“Deloitte Global”), each of its member firms and their affiliates are separate legal, independent entities that cannot be bound or bound by any third party. DTTL, each individual DTTL Member Company and their affiliates are responsible only for their own acts and omissions. DTTL does not provide any services to customers. For more information, visit www.deloitte.com/about.
Deloitte Legal refers to the constant collaboration with Jank Weiler Operenyi, the Austrian law firm in the international Deloitte Legal network.

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