September 11, 2019 – A new study by investment platform eToro reveals 40% of millennials prefer to invest in cryptocurrency during a recession.
eToro conducted the study among 1,000 investors in the United States. Respondents are between the age of 20 and 65 years old, representing the audience: Generation Z, millennials, and Generation X. Millennials are born between 1981 – 1996 and are age 23 – 37 years old in 2019.
Recession is a term that refers to the significant decline of the economy for atleast 6 months. While a recession begins when the GDP growth rate is negative for 2 consecutive quarters, the symptoms can and will always begin earlier.
Going back to the survey, eToro learned that 40% of millennials will invest in cryptocurrency if there is a recession. 50% of Generation Z (born 1997 onwards) prefer real estate. Generation X prefers commodities.
The report also reveals that in times of recession, stock portfolios of people will decrease but it will “fuel investor’s interest in fractional ownership”. Fractional ownership is when a person purchases a portion of an asset instead of purchasing the whole. For example, wallet app Abra allows a person to invest in US stocks for a portion of how much they really are. C Estates in the Philippines is looking to tokenize properties, allowing everyone to buy a portion of a real estate. In the survey, 92% of the respondents who say they are worried of recession also said they will own “fractions of famous artworks, buildings, and private startups”. 55% also said they will sell a portion of their stocks to finance their fractional investment ownership.
This article is first published on BitPinas: Research: Millennials Will Invest in Crypto During Recession, Gen Z in Real Estate, Fractional Ownerships