We are very pleased that we enjoy such confidence among millenials! About half of them trust the cryptocurrency markets more than … Wall Street. This is the result of the research conducted by the eToro investment platform.
43% of young investors do not trust stock markets, but believe in cryptocurrencies. 93% of them are of the opinion that they will be happy to buy more digital coins if traditional financial institutions give them such a possibility. In turn, 71% millenials, who do not have cryptocurrencies, declare that they will start investing in them if they reach brokers’ offers. 45% of respondents expressed interest in cryptocurrency shares in their pension plans.
Managing director eToro said that the market is now witnessing a generational change on the trading floor:
“Blockchain has its source in immutability, which makes a real-time audit reasonable and cost-effective, which is why Millennials and Generation X perceive cryptocurrency exchanges as less susceptible to manipulation.”
Banks are bad
Millenials also do not trust banks. In general, they consider current systems to be ineffective and outdated. In their opinion, they are not adjusted to their needs. This follows from last year’s research by Deidre Campbell.
In turn, the American statistical office has observed that millenials prefer to invest in cryptocurrencies than even in permanent assets such as real estate.
The current results are worth comparing with studies from previous years. It follows from them that cryptocurrencies filled a gap in the investment market. Even in 2015, the Harvard University Political Institute noticed that only 14% of Millenials believe that Wall Street actually cares about the interest of its clients.
After analyzing the results, Kevin Kelly said that the new trend may mean long-term problems for traditional institutions:
“This can certainly be a problem for Wall Street. We have not seen such changes since the financial crisis. Headlines appear every day: “Wall Street does it again”, “Another faux pas on Wall Street”, etc. ”
However, cryptocurrencies are not everything. Millenials also value non-cash alternatives, such as fintech applications, from banks. In China alone, AliPay, a platform owned by giant Alibaba, began to account for over 80% of all domestic transactions in the network.
Fintach applications are also a salvation for residents of poorer countries where banks are not functioning or their operation is very limited. In the Philippines, large banks have a difficult requirement to meet. They want both residents and citizens to keep a minimum deposit of USD 2,000 on their accounts. Thus, they limit access to services for many residents of this country.
Therefore, the popularity of cryptocurrencies, which do not limit access to payments to anybody, is not surprising, and they are largely independent of banking systems (only cryptocurrency exchanges depend on the institution). The fint and digital currencies market also allows you to make purchases using mobile phones.