Bitcoin hype in Central Saxony: speculation or new means of payment?

More and more people in Central Saxony are showing interest in Bitcoin and cryptocurrencies. In the summer of 2013, a colleague bought a Bitcoin for 85 euros out of pure interest and sold it in December 2013 for around 550 euros, minus fees. The current Bitcoin price is now over 90,000 euros, which further increases its attractiveness as a form of investment.

Markus Ziron, CEO of Volksbank Riesa, emphasizes that Bitcoin is not subject to government influence, which fascinates many investors. The first bank in the region, Volksbank Riesa, plans to offer its customers the opportunity to invest in cryptocurrencies in April 2024. So far, employees have referred to internet exchanges to enable Bitcoin trading. The population already has a general basic understanding of Bitcoin. In addition, recognition by the US banking regulator SEC is perceived as a positive factor.

Banking and crypto trading

While Volksbank Riesa is proactive about crypto trading, VR Bank Mittelsachsen and regional savings banks are cautious. Sparkasse Meißen does not make any recommendations regarding cryptocurrencies. Commerzbank is also examining options for direct investments in cryptocurrencies via Comdirect.

However, the consumer advice center warns of risks. Bitcoins are not suitable for building wealth and there are numerous dubious providers who come into contact with consumers via social media, messenger services or emails. These companies promise financial freedom and high returns, are often hidden behind dubious pyramid schemes and are often based abroad.

Risk warnings for investors

Markus Ziron advises that you should have money left over to buy Bitcoin and strongly warns that important savings should not be invested in cryptocurrencies. Instead, he recommends alternatives such as a share savings plan or a building savings contract. Despite the risks, Ziron sees potential for Bitcoin as a digital payment method, especially for small payments. Payment with Bitcoin is already possible in some restaurants in Dresden.

For those interested, the consumer advice center points out that Bitcoins can be purchased on certain exchanges or trading platforms. An electronic wallet is required to trade cryptocurrencies. These wallets can be divided into “cold wallets”, which are stored externally, and “hot wallets”, which are accessible via the Internet. However, there are numerous risks when investing in cryptocurrencies, such as negative price performance, technical aspects and security risks that must be taken into account.