Crypto revolution: Missing Germany’s chance to catch up!

Crypto revolution: Missing Germany’s chance to catch up!

The crypto market is currently making an impressive comeback with new all-time highs for Bitcoin, Ethereum and many other digital currencies. As of June 2023, crypto companies have raised a total of $5.14 billion in funding rounds, which is the highest in over three years. Higher financing volumes were only recorded in the months of November 2021 and January 2022. This sheds light on the recovering investment landscape, despite the challenges the industry has faced in recent years.

Although the market is on the mend, an alarming picture emerges when you look at the situation in Germany. According to a survey, 48% of companies surveyed in Germany believe that crypto payments will be commonplace in ten years. However, currently only 2% of companies in Germany use crypto payments, while 6% are theoretically open to it.

Global crypto investments

In 2022, the crypto industry wasn't exactly in the fast lane. Price movements and total market capitalization were negatively affected, including by the collapse of several major crypto companies. Nevertheless, it was reported by Galaxy Research that around $30 billion has been invested in crypto start-ups worldwide. With 2900 deals in 2022, the investment level almost maintained the level of 2021, which can be classified as strong.

Unfortunately, Germany has lost ground in this global context. Between 2009 and 2025, the country received about 2% of global crypto startup investments, but has recently only attracted about 1%. This suggests that Germany is being left behind in the international competition for crypto investments. In particular, the USA and China lead in terms of Bitcoin holdings, while Germany has not held Bitcoin for quite some time and has no plan to purchase one.

Regulation and future outlook

The fallout from bankruptcies of major crypto companies has led governments around the world to develop new laws to comprehensively regulate the industry. Despite the uncertainties, some optimism remains as capital inflows have been recorded in recent months. Blockchain developers consistently continue their projects and continue to work on innovative solutions, which is encouraged by the motto #BUIDL - to continue to remain active, even in more difficult times.

In Germany, only 8% of adults are invested in cryptocurrencies. This shows how great the potential for future growth is, especially if companies adapt and find new ways to integrate crypto payments into everyday business. Nevertheless, it remains to be seen whether and how Germany will react to this trend and be able to assert itself in international competition.