The investment platform eToro published a report that found 38% of Australian Millennials and Gen Z’ers are crypto investors.
Crypto becoming ever more popular among youngsters
If anyone needed more confirmation that cryptocurrencies are a bullet train you do not want to step in front of, they should consider the latest survey by eToro. The investment platform found that 18 to 34-year-old Australians are becoming ever more optimistic about cryptos, as indicated by a rising share of crypto owners in that age bracket. While a study by Finder found 31% of Millennials and Generation Z’ers to own crypto, the report by eToro established 38% as the new baseline.
The platform surveyed 6,000 people worldwide, which included 500 Australians. On top of the 38% already invested, another 35% said they plan to do so in the next 12 months. That would mean that two out of every three young people own crypto, an astonishingly high number given the asset class’ relative immaturity. This becomes more striking when compared with figures of older investors. Only 22% of 35 to 44-year-olds plan to invest in crypto in the next 12 months. For those between 45 and 54, that share goes down to 10%, while a mere 4% of investors aged 55 and older intend to invest in cryptocurrency.
Why are young people so bullish on crypto?
While common sense would suggest that historically change was always driven by young people, and crypto is no different, one cannot help but wonder where this stark difference comes from. After all, a good investment is a good investment and, surely, even seasoned investors would not sniff at potentially juicy returns.
It may just have to do with significantly different appetites for risk. While those aged 55 and older grew up with stable but attainable asset prices, younger people feel excluded from traditional investment vehicles like the stock market and real estate. They are not fussed by potential banana skins regarding the unclear taxation of cryptocurrencies and will happily sacrifice stability for returns that outperform the stock market.
When crashes come, they can be quite significant, and nowhere is that more pronounced than in meme coins like Dogecoin, which was down 70% from its all-time high in late September when the survey was conducted. So was Bitcoin, which traded around $48,000 at that time but has already rallied 30% from those prices back to new all-time highs.
Banks following the crypto trend
It seems that Millennials and Gen Z are happy to ride out the volatility and emotional rollercoaster that cryptocurrency investments inevitably entails. So far, returns have proven them right, as Bitcoin keeps minting new millionaires every other month. And even legacy finance, while certainly no friend of cryptocurrencies, seems to accept the “new paradigm” reigning financial markets. The Commonwealth Bank starting to offer crypto services is just one example of many. With crypto becoming more accessible by the day, perhaps next year’s survey might just have a tad more “traditional investors” willing to take the plunge.
