Thursday, May 23, 2019

Submit your article, and share your news with the world! BTCNN is now accepting user submitted articles. 

More Millenials Continue To Show Interest In Cryptos Than Stocks

[the_ad_placement id="article-top"]

A recent survey, conducted by eToro, a multi-asset trading platform reveals that almost half of millennials online have some level of confidence in the cryptocurrency market than the U.S. Stock Market. EToro revealed this in a report on the 19th of February.

The Shift From Stocks To Cryptocurrencies

As indicated, 43 percent of millennials online, mostly traders, have built their trust around cryptocurrencies more than they have done with the traditional stock market. The managing director of eToro U.S., Guy Hirsch, in his view about the survey, says the beginning of a generational shift from the traditional stock exchanges to crypto exchanges has come. He further mentioned that at the heart of this change are the asset classes themselves.

Hirsch continues, saying that the younger traders experience with the stock market had 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. Also, he noted that trust had been eroded when Americans saw how hundreds of billions of dollars of taxpayers money are funnelled to large financial institutions while their savings evaporated and how banks get free money through quantitative easing while their cost of living continued to rise.

In contrast, Hirsch noted that immutability is native to blockchain and it makes real-time audit to be sensible and cost-effective. This 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’s money.

Preference For Institutional Crypto Offering

While a good number of millennials have more faith in cryptocurrencies than the stock market, they are still more enthusiastic about the prospect of traditional financial institution offering crypto assets. Ninety-three percent of these millennials indicate that they would invest more money in crypto if it were offered by traditional financial institutions such as TD Ameritrade, Fidelity, or Charles Schwab. Among those that do not trade crypto, 71 percent stated they would invest if offered by traditional institutions.

Also, despite the distrust of investors in traditional exchanges and largest investment banks, younger investors still demand offerings from firms that are more recognisable. That are not perceived to be bad actors and have an infrastructure that can provide personalised and tailored advice.

The result of the survey indicates the reason for the hype and interest in the Bakkt crypto trading platform that will be launched later this year.

Enjoyed this article?
Subscribe to our mailing list and receive the hottest news directly to your inbox!
[the_ad_placement id="article-bottom"]

Advertisement[the_ad_placement id="article-side"]

More Articles