About 50 percent of millennial Bitcoin (BTC) traders in the United States trust digital currency trading platform more than the traditional stock market. This was revealed in a study carried out by eToro – a digital currency trading platform. The survey saw one thousand online participants/traders across the nation.
The result of the survey shows that 43 percent of millennials in the U.S trust digital currency trading platform more than the U.S. stock exchanges. The survey also reveals that a massive 77 percent of Generation X traders that partook in the survey trust stock exchanges more.
The Generational Divide of Digital Currency
The managing director of eToro U.S. – Guy Hirsch – said that the research highlights the schism between the way the younger generation embrace digital currencies versus the skepticism of their older cohorts. In a statement, Hirsch said:
“We are seeing the beginning of a generational shift in trust from traditional stock exchanges to digital currency trading platform. The experience of younger investors with the stock market has seen a great deal of loss of trust, with the fall of Lehman Brothers due to irresponsible practices accompanied by the worst recession since the Great Depression.
Immutability is native to the blockchain, and that makes real-time audit cost-effective and sensible. And that is why Generation X and Millennials perceive digital currency trading platforms as less likely to be subject to manipulation and less likely a place where bad actors get rewarded with taxpayer money.”
The Crypto Space Will See an Influx of Institutional Investors
Irrespective of their skepticism toward traditional financial institutions, the survey of eToro shows that 93 percent of millennial digital currency traders would invest more in digital currencies if they were offered by established institutions, such as Fidelity, Charles Schwab, or TD Ameritrade.
“While both millennials and digital currency buffs alike seem to distrust monolithic instructions such as traditional trading platforms and the largest investment banks that play in them, there is a very high demand for younger investors for offerings from companies that are more recognizable, aren’t perceived to be bad actors and have an infrastructure that can provide tailored and personalized advice.”
The survey carried out by eToro highlighted the sentiments of Matt Hougan. Hougan is the head of research at Bitwise – the creator of the first digital currency index fund in the world. According to a report by CCN, Hougan believes Bitcoin (BTC) is the answer of the millennial generation to gold. He made references to recent surveys indicating that millennials have a more favorable view of digital currencies compared to baby boomers.
Hougan said: “Every generation has an asset that they love or a way of getting the exposure that they love. The Greatest Generation love gold, then most people loved active mutual funds. Generation X loved hedge funds. Millennials love digital currencies.”
Hougan attributes the love for digital currencies by millennials to the decentralized nature of the currency, which eliminates the need for intermediaries. He believes that is particularly appealing to the younger generation.
Bitcoin (BTC) Price Today – BTC / USD
At the time of writing, Bitcoin (BTC) is changing hands at $4,015 after an increase of about one percent over the past twenty-four hours. The current market cap of the digital currency is $69.43 billion with a trading volume of $6.59 billion over the past twenty-four hours.