The millennial generation has a mixed reputation. While there are plenty of people from older generations that focus on their need for “their way,” that preference is highly beneficial to the cryptocurrency industry. With its immutability and plethora of investment options, recent data from eToro shows that about half of millennial traders have more trust in the digital exchanges that allow for cryptocurrency trading, instead of the more traditional stock market.
Speaking on the way that millennials approach their own investments, Guy Hirsch, the managing director of eToro in the US-based office, said,
“Younger investors' experience with the stock market has seen a great deal of loss of trust, with the fall of Lehman Brothers because of irresponsible practices followed by the worst recession since the Great Depression. Trust further eroded when Americans saw how hundreds of billions of dollars of taxpayers money are funneled to the largest financial institutions while their savings evaporated and how banks get free money through quantitative easing while their cost of living continued to rise.”
The official percentage of the report is 43%, who said that they have more faith in the crypto exchanges. Of the millennial crypto traders, there were 93% of participants in the survey that said they would invest even more if there were options to do so at traditional financial institutions. Still, there are 71% of millennials that do not trade cryptocurrency at all but said that they would start if conventional institutions made it an option.
Hirsch spoke on what makes the younger generation more trusting of this market, saying,
“Immutability is native to blockchains and that makes real-time audit to be sensible and cost-effective and that is why millennials and Gen X perceive crypto exchanges as less likely to be subject to manipulation and less likely to be a place where bad actors get rewarded with taxpayer money.”
Of all respondents, almost half of them said that they would be interested in collecting cryptocurrency as part of their 401k retirement savings plans. Of the digital currency traders, 74% said that they would like the same option available as well. Hirsch elaborated, saying,
“While there is clearly a demand for crypto assets in 401k portfolios, there are a number of regulatory and market changes that need to occur before it becomes a mainstream offering. We would need to see more advisors become educated on crypto assets and getting comfortable recommending their customers to shift into crypto markets from traditional equity markets. Mainstream traction will also be aided by the approval of ETFs that track crypto assets. At that point, we could see crypto offerings in 401k portfolios.”
Provoke Insights performed this survey on behalf of eToro in September last year, collecting information from 1,000 online investors, ranging from 20 years old to 65 years old. Still, the company was clear that there was still a 3% margin of error.
In research that was made available to the public last November, the millennials that seemed to be most invested in cryptocurrency made between $75,000 and $99,999 a year. This survey took data from ages 18 to 80 for a much larger span. Peer influence was the main reason for 40% of these respondents choosing to get involved with the crypto market. Another 35% ended up in the crypto market out of a “fear of missing out” (FOMO).