eToro's Survey Reveals 40% of Millennials Could Favor Crypto Investment In Recession
A survey by eToro has revealed that 40% of Millennials could favor cryptocurrency investment if a recession was instigated by the US-China trade war.
eToro, a Cyprus based multi-asset and social trading brokerage company, recently surveyed American investors about their concerns about how their portfolios could be affected by the US-China trade war and conflicts with Mexico.
Two-thirds of the respondents asserted that they were worried about a looming recession. As a result, they were weighing options on transferring their assets to various safe-havens, such as cryptocurrency.
Hedging risks are always in the mindset of any investor. Notably, those surveyed from America are not an exemption as they are searching for alternatives to realize this objective. The eToro survey revealed that 40% of millennials (individuals born between 1980 and 1994) favored cryptocurrencies.
Conversely, investors from Generation X (people born between 1965 and 1979) affirmed that they preferred spending on goods, whereas their Generation Z counterparts (from 1995 to present) preferred real estate investment.
Guy Hirsch, eToro’s USA Executive Director, asserts:
"We believe that if a recession were to occur, we'd see shrinking stock portfolios and growth in other asset classes like crypto, as well as new fractional ownership models. 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."
Notably, at least 1000 investors were involved in the survey. Cryptocurrencies, such as Bitcoin, have been favored as being considerable hedges against worldwide risks instigated by the US-China trade war.
Some pundits have asserted that an escalation of this issue will push cryptocurrency adoption at an alarming rate. Expressly, this is happening as the IMF chief, Christine Lagarde, recently proclaimed that cryptocurrencies should be given more room to grow.
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