Current market volatility has led to staggering losses for young UK investors in cryptocurrency
The recent crash in cryptocurrency has left many young investors in the UK concerned about their investments. More than 6% of British citizens own cryptocurrency as of March 2022, a statistic that has more than doubled since 2018, with older Gen Z and younger millennials accounting for 37% of total ownership in the UK. However, the current market volatility has led to staggering losses for some investors who were hoping for vast returns.
The rise of cryptocurrency was fuelled by overnight millionaires and extraordinary stories of vast returns
The popularity of cryptocurrency was fuelled by the overnight millionaires and extraordinary stories of vast returns resulting in a bedroom day-trading economy, with lockdowns seeing the rise of these new investment communities through chat rooms like Reddit and apps like Robin Hood. Crypto and the coins based on this technology are widely used in the DeFi space, which has captivated a generation left feeling discarded by archaic and self-serving institutions, particularly after the reckless financial lending and ultimate bailout of 2008.
Some DeFi applications linked to less risky assets could prove more suitable for investors in these turbulent times
However, the recent crash has led to investors becoming risk-averse and migrating their money to more stable sectors like blue-chip value stocks and gold, leaving crypto feeling the brunt of this trend. Some DeFi applications linked to less risky assets could prove more suitable for investors in these turbulent times, providing a glimmer of hope for young investors in the UK.
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