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40% of millennials would invest in virtual currencies in case a recession hits the economy. This is according to a recent report released by eToro on September 10. This comes at a moment in which many analysts are forecasting an economic recession in the coming years.
Millennials Are Interested In Cryptocurrencies
eToro, the recognized investment platform, conducted a survey on how different generations manage their investments. 1,000 individuals participated in the survey that was conducted online between July 18 and July 31 in the United States.
According to this survey, more than 66% of U.S. investors are afraid of a recession in the economy. In order to reduce their exposure to it, they would move part of their stock portfolios to other hedge assets and investments. That includes commodities and real state, among other things.
40% of the millennials mentioned that they would prefer to invest in digital currencies in case of a recession. 50% of Gen Z individuals would purchase real estate rather than other assets. Meanwhile, 38% of Gen X said they would hedge with commodities.
Thus, there is expected to be a movement from stocks to other asset classes such as the ones we mentioned.
On the matter, Guy Hirsch, managing director of eToro U.S., explained:
“Historically, these investment opportunities have been limited to high net worth and institutional investors, but innovation is unlocking these opportunities for everyday investors and clearly, these results indicate that the demand is there.”
Although Bitcoin (BTC) has been more than ten years in the market, it has not been tested as a hedge asset during a global financial crisis or a recession. It is also worth taking into account that Bitcoin and digital assets may be too risky assets for a standard recession, but become a store of value in case a massive financial crisis hits the world.
Bitcoin is considered to be the digital gold for being the first digitally scarce asset in the world. At the same time, the network works in a decentralized way and it would be protected against a group of people taking the network over. Although Bitcoin is a non-correlated asset, there were some occasions in the last month in which Bitcoin and gold operated in tandem. This happened when trade tensions between the United States and China increased.
Although there may be no correlation between these two assets, it is highly possible for Bitcoin to become the gold of younger generations.