Crypto currencies become a central investment choice for thousands of years and generation Z. Global Retail Investor Outlook 2024 that World Economic Forum (Wef)A growing part of young investors, more than half of their portfolios Digital Currencies. This trend is not a temporary phenomenon, but reflects a wider change in the approach of new generations. Financial risk, trust and investment planning.
The report based on a questionnaire on it 13,000 people in 13 countriesIt reveals surprising data: 62% of Millennials are at least one -third of their portfolios Crypto currencyduring 35% of the Gen Z make more than 50% investment in digital assets. Moreover, 20% of young people belonging to Generation Z allocated approximately one third of their portfolios to investments in crypto currencies..
However, what pushes these investors to bet so much to crypto currencies? According to the report, the answer, technological accessibility with Trust in values associated with blockchain, Effect of Social Media and Digital Education Platforms.
Why does young Millennials and Gen Z prefer crypto currencies according to traditional investment instruments?
An important aspect that emerges to work Do new generations perceive crypto currencies? more understandable than traditional investments like Investment funds, bonds or ETFs. This perception is completely different from the traditional view that evaluates crypto-carisms as extremely complex and risky.
Unlike previous generations, millennia and gene are increasingly relying. Traditional Financial Consultants For investment decisions. Instead, they prefer resources such as. Crypto currency platforms– Impressive content and online communities Educating themselves and deciding independently.
This change in the search for knowledge reflects more tendency to practical learning rather than adhering to traditional financial plans. Phenomenon one Difficulty for organizers and financial trainingsThose who have to guide a audience who prefers themselves Youtube Classical reports of consulting companies.
An investment directed by personal values
Beyond the perception of ease of use, another basic factor that directs the financial choices of young generations Ethical value of investments.
According to the report:
- . 70% of the millennium And 66% of Gen Z to choose Financial institutions compatible with ethical principles.
- Crypto currencies with principles decentralization and transparencyWith this mentality, it is strongly echoed.
The interest of young investors is not limited to crypto currencies, but also extends to the other Alternative assets and financial activism. This shows that it is an increasing willing to use investments as an intermediary. actively affect the market And To promote innovation and social change.
The adoption of crypto currencies is higher in developing markets
Not only young people from developed countries that are adopted by crypto currencies. The report from Wef emphasizes how developing markets have a higher level of participation than further countries.
Some interesting data appeared from the report:
- 36% of investors in developing markets are crypto currenciescompared to Globally 27%.
- Countries like countries India– Brazil and South Africa to show Higher adoption rates compared to Western colleagues.
This dynamic partially, in many developing economies, crypto currencies Access to financial markets inside Areas with underdeveloped banking infrastructures. The crypto currency sector offers a unique opportunity to skip traditional intermediaries and access global investment forms.
Effect of Technology: AI and fintech are changing the sector
Another element with a significant impact on this trend is also Increased role of technology in financial management For new generations.
According to the report:
- . 41% of global investors – And almost half of the millennium and the gene z – Transferring financial decisions to artificial intelligence algorithms.
- New generations are the most active users. Budgeting applications, robo-supplies and fintech Platforms, often vehicles Integrate the crypto currencies main functions.
These data show that technological tools are increasingly integrated. Daily Management of Digital PortfoliosTo make crypto currencies a continuous asset in the financial habits of the young generation.
Excessive exposure to crypto currencies
Despite the enthusiasm and growth of the sector, Wef report also emphasizes risks It is associated with this trend. Millennials and Gen Z’s portfolios volatile Asset increases Worries about long -term financial stability.
Organizers and financial training experts delicate challenge: Finding effective ways Information and protect young investors Without limiting the innovation of the bull and bear sector.
As of today, the learning strategies of new generations seem to be more directed. Direct experiences and digital content Instead of relying on traditional institutions. This requires NEW EDUCATION AND REGULATION NEEDSThis industry will have to adapt to the development speed.
Solution
. World Economic Forum Report It emphasizes how Millennials and Gen Z transforms the investment environment thanks to its strong tendencies towards crypto currencies. Digital Financial Technologies.
Personal Values, accessibility to global markets and centrality of technology This is the main driving forces of the financial revolution. However, strong exposure to digital assets, raising questions about the protection of the investor and the protection of investors. Balanced approach between innovation and regulation.
The future of the investment is increasingly digital and decentralized, Rediscover the global financial system.
