What do you invest in? Generation Z prefers “cryptocurrency”
When you choose an investment, do you choose stocks or cryptocurrencies? For young adults or traditional investors, stocks may be the obvious choice, but for young Americans, cryptocurrencies may be the priority.
According to "The Block", in October last year, Policygenius began a survey of 4,063 adults over the age of 18 in the United States. Recently released results show that 20% of Generation Z young people (18 to 26 years old) hold cryptocurrency and 18% hold stocks. By comparison, 33% of baby boomer investors hold stocks and just 5% hold cryptocurrencies.
Millennials aged 27 to 42 are also interested in cryptocurrencies, with 22% holding cryptocurrencies and 27% holding stocks.
Interestingly, the U.S. Financial Industry Regulatory Authority (FINRA) and the CFA Institute also conducted investment surveys last year. The results showed that about 56% of Generation Z people will invest, of which about 55% hold cryptocurrency and 41% When it comes to holding stocks, the results of the Policygenius survey are the same: there are more currency holders than stockholders.
Why do young people choose to speculate in currencies? High interest rates, stagnant wages, unaffordable housing
Stocks are the world's largest risky asset and the choice of most investors. In comparison, the cryptocurrency market is much smaller, with an overall market capitalization of only $2.36 trillion, which is far lower than the total market capitalization of the U.S. stock market of $40.7 trillion. Why do young Americans choose to speculate in currencies? This report hits home the key points.
Policygenius noted that housing affordability is at its lowest point since the Great Recession due to the U.S. environment of high interest rates, stagnant wage growth and low housing supply, leaving many Americans unable to afford a home. Only 20% of Gen Z and Millennial adults surveyed own real estate.
The baby boomers are the beneficiaries of real estate investment, with a holding rate of 45%; the holding rates of Generation 13%. Policygenius believes that the growing shortage of housing supply may make it difficult for young people to benefit in the same way.
It is not surprising that Millennials and Generation Z will allocate funds to stocks and cryptocurrencies when they do not plan to buy a house or cannot afford it. For Generation Z, cryptocurrencies seem to be a bit more novel than stocks and are expected to become a way to accumulate wealth in the new era. Myles Ma, Certified Personal Financial Advisor at Policygenius said:
Even young people in Taiwan cannot afford to buy a house! Far Silver: Generation Z has become a native of virtual assets
Young people in Taiwan are also in a similar predicament, and have even developed a "living culture", that is, not getting married, not buying a house, not having children, and not working hard. YouTuber Zhiqi Qiqi pointed out in his latest video that Taiwan's wage growth has stagnated for 20 years, but food consumer prices have increased by about 40%, and uncontrolled growth in housing prices has also caused people's housing price-to-income ratio to rise year by year.
Although the wages of Taiwanese born after 1978 are lower than those of the previous generation, they happened to encounter the soaring housing prices in 2002. This group of people who benefited from real estate investment are under 46 years old this year and belong to the U.S. Class of Generation X.
Affected by the general environment such as booming real estate and stagnant salary growth, there are even a small number of young people from Generation Z who are only willing to invest in new investments such as virtual assets.
According to a previous survey by Far East Bank, among 3,434 valid questionnaires, as many as 22.4% of Generation Z respondents invested in virtual assets (cryptocurrencies, NFTs, etc.) accounting for more than 50% of total assets; and 13.8% only invested in virtual assets. Investing in virtual assets has no other investment targets; 54.8% of people invest in high-risk memecoins, which is higher than the average of the entire generation group.
Far East Bank describes Generation Z as "virtual asset natives", while more than half of the Millennials (Generation Y) have been exposed to virtual assets and are the main generation of virtual assets. They are more concerned about whether the government will have clearer regulatory measures in the future.
It can be seen from surveys in the United States and Taiwan that although the economic environments of the two countries may not be exactly the same, they both have high housing prices and stagnant wage growth, which has gradually changed the investment preferences of the younger generation.
If you are reading this article, would you rather invest in cryptocurrency, stocks, or real estate? If you prefer cryptocurrencies, why? Welcome to share with us in the comments below~
This article is reproduced with permission from: CryptoCity
Review editor: Gao Jingyuan
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