A new survey by trading platform eToro shows that millennials and the younger generation of investors have more confidence in bitcoin (BTC) and cryptocurrencies than in traditional stock exchanges, a press release reports on 19 February.
EToro interviewed 1,000 online traders for the study. The survey shows that about 43% of millennials who trade online have more confidence in cryptocurrency exchanges than in the US equity market.
Of these millennials, two-thirds say they have more confidence in cryptocurrency than in the stock market. And of the millennials who do not act in crypto, a third party has indicated to have more confidence in crypto.
On the other hand, 77% of Gen X respondents indicate that they have more confidence in shares than cryptocurrencies. Guy Hirch, CEO of eToro, says that a clear generation shift can be seen:
We see the beginning of a generational shift in confidence from traditional exchanges to crypto exchanges. The core of this change is the asset classes themselves. Experiences of younger investors with the stock market have led to a great loss of trust, with the fall of the Lehman Brothers because of irresponsible practices followed by the worst recession since the big depression. Trust deteriorated further when Americans saw hundreds of billions of dollars from taxpayers being led to the biggest financial institutions, while their savings evaporated and banks get free money through quantitative easing while the cost of their livelihood continues to rise.
The research also shows that about 93% of the millennial who act in cryptocurrency would invest more in cryptocurrency if it were offered through more traditional financial institutions. And 71% of the millennials that do not act in crypto indicate that they would enter the crypto market if it were offered by a traditional institution.
Among all age groups that do not engage in crypto, 59% of them want to invest in crypto if they are offered by traditional financial institutions and 92% of the crypto traders in all age groups indicate that they will invest more.
Last November, eToro unveiled its own cryptocurrency wallet and a blockchain project called GoodDollar whose goal is to counter economic inequality in the world.
A recent study by the Global Blockchain Business Council (GBBC) indicates that more institutional investors will enter the crypto market in the next five years.