The global financial landscape has always been an evolving one and the prospects available to one generation will not necessarily be the ones available to another. Millennials and Gen Z have especially found it challenging to pursue homeownership like those who came before them.
On the other hand, they have access to certain investment vehicles that simply didn’t exist decades prior. These include assets like crypto and NFTs and according to a new study, young people are eschewing traditional home buying for investing in crypto, which has massive implications for the economy.
Coins or Condos?
This new information comes via Protocol Theory, a consumer insights company, and cryptocurrency exchange Easy Crypto. As per the study, 50% of Kiwis have already owned crypto or plan to do so. Over the years, the uses of cryptos have become very varied in their use.
Of course, there is their common use as an investment vehicle, with assets like Bitcoin reaching new all-time price highs. Along with this, cryptos can be used for gambling. As Khadija Bilal has said, there are even casinos accepting 1 dollar deposits in crypto so consumers can get their needs met when on a budget. Even an anonymous casino can be accessed using crypto. Finally, a growing number of merchants are accepting cryptocurrency for their goods and services so there are many avenues to spend.
As such, it comes as no surprise that more Kiwis are turning to crypto thanks to its accessibility and profitability. The same cannot be said for the real estate market according to the study. 16% of respondents said that they could invest small amounts of money in the real estate market but 60% said that they could do the same with crypto.
This clearly shows that one form of investing is more accessible/attractive to young people than the other. Some other notable findings from the study included 26% of respondents saying that crypto assets helped to secure equality for all, compared to 23% who said the same thing about the real estate market.
But even as more young people are looking towards crypto, there are still some issues that need to be resolved. As per the study, 72% of people who haven’t invested in crypto said that they don’t yet know how to start. Another 50% of respondents said that crypto service providers should be regulated, showing that even among consumers, there is a desire for regulation.
The Implications of This
These results indicate that more of the working population’s income might be going towards crypto assets as opposed to more traditional ones. After multiple recessions, cost of living issues, and growing inequality, many seem to be turning their attention elsewhere.
This means that in the future, we should see a bigger crypto industry and hopefully, a more regulated one where consumer protections are in place. Given the profitability of the market, this could benefit the financial situation of the public whilst growing one of the most innovative modern sectors.
