Young British investors are twice as likely to buy cryptocurrencies such as bitcoin as they are to buy stocks, a survey by U.S. financial group Charles Schwab indicated on Thursday. In the survey, 51% of investors in the U.K. aged between 18 and 37 traded or owned cryptocurrencies, double the number of those – 25% – buying or holding equities.
Only 8% of investors aged over 55 trade cryptocurrencies in the U.K.
Exposing the gap in generations when it comes to investing, a mere 8% of investors aged over 55 aged trade cryptocurrencies in the U.K. The leading cryptocurrency bitcoin hit a record of almost $65,000 last week but has pulled back more than 16% since. Despite the recent pullback, bitcoin has gained nearly 90% this year as large investors, banks from Goldman Sachs to Morgan Stanley, and household name companies such as Tesla Inc warmed up to the cryptocurrency. Tesla earlier announced that it is accepting bitcoin as payment for its electric cars.
Younger people are more inclined to buy crypto.
The survey noted that as more young people purchase speculative products, there is a fear that these investors are not diversifying their portfolios enough to mitigate risks in case cryptocurrency markets decline. Its finding showed seven out of 10 young investors were uncertain about building protections against losses in the current financial environment. The survey was conducted between February and March 2021 among 1,000 UK investors aged over 18 and holding at least one type of investment. The ongoing global pandemic has also created the need for cashless transactions, which has helped crypto prove its case to the general public.