Gen Z and millennial investors remain cryptocurrency’s core evangelists, even amid market volatility and crashes, new data shows.
A recent survey of 6,000 global investors — including 500 Australians — by investment platform eToro hammers home the overwhelming optimism of this cohort around crypto.
The survey found that overall 38% of 18 to 34-year-old Australians invest in crypto, and 35% of this group of respondents said they planned to invest in crypto in the next 12 months.
By contrast, 22% of investors aged 35 to 44 said the same, and only 10% of those aged 45 to 54 and 4% aged 55 and older intended to outlay funds into crypto.
Around 44% of Gen Z and millennials believe bitcoin will be the best investment opportunity over the last quarter of 2021, with 22% suggesting ether; the digital token linked to the ethereum blockchain, held the greatest potential for returns of any asset class.
The research also found that 13% of investors in the 18 to 34 category anticipate meme currency dogecoin will be the best investment looking forward, compared with 1% of those over the age of 55.
The bullish outlook of the two youngest generations highlights their commitment to crypto — including meme coins — despite the pronounced crashes that have shaken bitcoin, among other tokens, this year.
In late September, when the survey was conducted, dogecoin was trading at levels 70% lower than its peak in May this year.
Similarly, bitcoin’s price took a significant dive, falling from $US 47,879 on the 17th to $41,587 by the end of September.
Ether’s price fell from $US3280 in mid-August to $US 2,838 in mid-September, before spiking to $4,263 per coin in early October.
The findings come amid global moves to both legitimate and regulate cryptocurrencies, including a report by the US government this week that called for the regulation of issuers of stablecoins – which are digital tokens pegged to external assets such as the US dollar – as if they are banks.
On Wednesday the Commonwealth Bank announced a landmark move to add cryptocurrency trading functionality to its banking app.
The new features, which will be offered to select customers as part of a pilot program this year, before a broader rollout in 2022, were reportedly driven at least partly by demand by younger customers.
While the local sample size is small, it’s indicative of Gen Z and millennial’s commitment to cryptocurrency through volatility, Robert Francis, managing director of eToro in Australia, said.
“Not only are they taking the steps to educate themselves about the crypto industry as a whole, but they are also doing their due diligence by researching the individual crypto assets they want to invest in, keeping up to date with the news and diversifying their portfolios with a range of other asset classes in order to hedge against risks such as inflation,” Francis said.