eToro is a massive social media platform which has just released the results of a market survey which shows that more than 40 percent of online traders who are classed as millennials don’t have as much ‘faith’ in the performance of the traditional stock market in comparison to the crypto market.
Just over 70 percent of the millennials who responded to eToro’s survey said that they would invest “in crypto if it was offered by traditional financial institutions.” Some of the other notable results from the trading firm’s poll included “half of online investors expressing interest in a crypto allocation in their 401k plans.” For those that don’t know, in the United States, a 401k is a retirement savings plan (pension) which is sponsored by an employer. The plan allows employees to “save and invest a piece of their paycheck before taxes are taken out.”
In eToro’s press release, the firm did a countrywide survey of 1,000 online traders and showed that 77 percent of Generation X respondents “trust stock exchanges more” than a crypto asset-related investment of emerging markets or alternative markets.
The managing director at eToro, Guy Hirsch said:
“We're seeing the beginning of a generational shift in trust from traditional stock exchanges to crypto exchanges. At the heart of this change are the asset classes themselves. Younger investors' experience with the stock market has seen a great deal of loss of trust, with the fall of Lehman Brothers because of irresponsible practices followed by the worst recession since the Great Depression.”
Hirsch went on to express his confidence in the ‘immutability’ feature of blockchain tech. Explaining, he said that distributed ledger technology-based systems will allow companies to conduct real-time auditing in an effective way, in terms of cost. Hirsch says that this is why Generation X and millennials believe cryptocurrency exchanges are “less likely to be subject to manipulation and less likely to be a place where bad actors get rewarded with taxpayer money.”
In some other research executed by the eToro’s survey suggested that some of the younger investors had more faith in cryptocurrency investments rather than traditional stocks. More notably, eToro’s nationwide poll of US-based investors found “even among millennials that [said they] don't trade crypto, one-third said they would trust crypto over the stock market.”