Economics

Germany claims the title of the new crypto center

The Germans are known around the world as stalwarts of cash, but even they cannot skip the crypto revolution. They are interested in Bitcoin because of its anti-inflationary nature and anonymity, while in Berlin there live developers of leading crypto-currencies, including Ethereum, and other block-projects.

If China bans miners, they can easily move to Germany, where the price of electricity falls due to the transition to renewable energy sources. According to Deloitte, on the GitHub platform, German block projects rank fourth after China, the United States and Great Britain (total 1,307). The first of them began to appear in 2008, and the local crypto-currency community calls Berlin – the center of block-development.

The founder of BlochkchainHub, Shermin Voshmgir, observes that the technology originally invented by the anarchists is now being promoted by German banks.

Joerg von Minckwitz, the founder of the Bitwala start-up from Berlin, says he was interested in bitcoin in 2011 after the debt crisis in Europe. Interest was caused by problems with central authorities that tried to control their money.

Trent McConaghy is from Canada, but he opened BigchainDB in Berlin. He develops decentralized solutions for databases and believes that the roots of the popularity of the blockchain among the Germans go back to the era of the Weimar Republic with its hyperinflation and the period of the Cold War.

Andreas Schildbach, a Berlin programmer, was one of the first developers of Bitcoin wallets for mobile phones. And Gavin Wood, co-founder of Ethereum, says that much of the development of the ETH was made by the Berlin teams. Many crypto-drivers visit the Joerg Platzer bar “Kreuzberg 77”, which is famous as the first bar in the region, that accept BTC for payment and even use them for suppliers transactions. Indeed, the legendary place.

The research conducted by the International Journal of Central Banking in 2016 showed that the Germans used cash in 82% of the transactions and in 53% of the transactions at a cost – much more than Americans, British or French. The popular German principle says: “nur Bares ist Wahres” or “Only Cash is Real”. This principle has worked successfully for many years.

But the love of the Germans for cash hides an even greater fear of inflation, born in the interwar hyperinflationary period. The Germans are very suspicious of the weakening of the monetary policy pursued by the ECB in connection with the debt crisis in Europe. In conditions of zero and even negative interest rates, many players are ready to take risks and invest in Bitcoin, which is limited in its issue.

Other German cities, such as Frankfurt and Munich, are also becoming interested in blockchain technology. Thus, Deutsche Bank and Bertelsmann are striving to integrate the blockchain into their operations. German companies feel the need to finally take part in the new technology, says the head of the Gründerfonds fund Alexander von Frankenberg.