Can one trust cryptocurrencies and the change they hope to bring? Well, it may depend on your age. A recent study conducted by eToro showed that the majority of Millennials, aged 20 – 38 have more faith in cryptos than in stocks. However, General X, aged 39 – 53 indicated that they trust stocks more than cryptos.
Numbers don’t lie
The survey showed that about two-thirds of online cryptocurrency traders who fall under the Millennial generation have more faith in cryptos than in stocks. 77% of Generation X prefer stocks to cryptos.
A possible reason for the difference in opinions could be due to alterations in education. It is true that Millennials may be more familiar with technology such as Google and Amazon than Generation X. What stood out during the survey was the understanding Millennials have of technology and how reliant they are on technology. When it comes to cryptocurrencies, Millennials are drawn to the ease of use, high profitability, and the hype.
Why does Generation X prefer stocks to cryptos?
The main reason why Generation X prefer stocks to cryptos may be due to a lack of proper infrastructure. For example, the number of crypto exchanges that have been hacked. A total of $1.5 billion have been lost in crypto exchange hacks.
However, it seems as if the digital currency market may be catching up quickly. Progress has been made in terms of decentralized exchanges, a Bitcoin ETF that hope to bring institutional investors to the party and some regulations.
Getting back to the stock market infrastructure, it may not be hacker proof. It is said that the stock market infrastructure may also be far from perfect and not immune to hackers. Back in 2010, the U.S. markets suffered from a flash crash, in 2011 Nasdaq was hacked and in 2017, there was a price reporting glitch in the system. Even banks are hacked from time to time.
It is interesting to note that even J.P. Morgan is planning to use blockchain technology for cross-border payments and corporate debt issuance. They will be launching JPM Coin in the near future.
Read Bitmart’s blog ‘J.P. Morgan Coin – Friend or Foe to crypto world?’
Can one trust cryptocurrencies?
Bitcoin and the entire cryptocurrency market broke out last week. Just as it was reaching towards the $4 500 line, the market plummeted to $3 700. It was reported that when Bitcoin broke the $4 000 resistance, a lot of people opened long positions. Whales are being blamed for the sudden dump in the price and it is said that they wanted to liquidate these long positions. More than $30 million longs were liquidated.
For now, Bitcoin needs to build momentum and break the $3 800/$4 000 line that is likely to see the price go up steadily. Keep an eye on Bitcoin on Coinmarketcap. Click here.
At times, one may feel that you cannot trust cryptos but this is largely due to the extreme volatility of the market. As long as you trade cautiously and put stop losses in, you have nothing to worry about.