According to a new study published by investment platform eToro on Feb 19, nearly half of millennial traders have more trust in digital currency exchanges than in the United States (US) stock market exchanges.
As per the Eltoro report, 43 percent of the surveyed millennial online traders showed less trust in the traditional stock market, but had unrelenting faith in fairly new crypto exchanges. The report also showed that 93 percent of millennial crypto traders said that they were willing to invest more in digital currencies if traditional financial institutions made such as an option available.
In the same vein, 71 percent of non-crypto trading millennials expressed a willingness to begin investing in cryptos if conventional institutions made it possible.
In line with the findings of the survey, eToro US managing director Guy Hirsch; said that the investing market was witnessing a generational shift away traditional stock exchanges in favor of digital currency exchanges.
He said;
“Immutability is native to blockchains and that makes real-time audit to be sensible and cost-effective and that 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 money,”
Going back to eToro’s study, 45 percent of the millennials surveyed expressed an interest in having crypto-currency allocated in their 401k retirement savings plans while 74 percent of traders in digital currency would want their 401k plan providers to make the option available for them to take up.
The research study which was conducted by market research and strategy firm Provoke Insights on behalf of eToro in September last year; saw 1000 online investors between the ages of 20 to 65 surveyed, with the company noting a margin of error of about 3 percent.
A separate study published in November last year, reported that crypto-currency investing was most popular among millennials with annual wages ranging from $75,000 to $99,999. This separate study had respondents ranging from age 18 to 80.
Data from this study showed that 40 percent of the respondents became crypto investors because of peer influence while over 35 percent of crypto investors were in it because of “Fear of missing out” (FOMO)
A great takeaway from both studies is the slow but steady shift from traditional stock market investing to crypto investing. This is especially so among young investors while older investors prefer to stick to what they know, as they slowly warm up to cryptos. This slow shift could with time add Billions of dollars to crypto markets which will definitely have an impact on token prices.
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