Every fifth Australian resident is convinced that investing in crypto will bring him closer to buying a home compared to traditional savings. So, back in November 2020, former Australian politician and Corey Bernardi called Bitcoin “gold for millennials”.
Almost a quarter of the respondents expressed concern about the decline in the value of money in traditional savings products.
Among Australians aged 25-40, 40% consider cryptoassets a reasonable alternative to buying real estate. In the group from 40 to 60 years old, 31% adhere to this opinion. Among young people, this share is 24%.
The volatility of digital assets has become a barrier to investment for almost one in two baby boomers.
Investing in housing has traditionally been one of the most popular types of investment for the younger generation. However, the situation on the housing market is changing now. Young people who belong to the millennial group believe that Bitcoin is a better investment than buying real estate. According to research and analysis, they see a higher potential for the mainstream crypto in terms of profit margins and volatility. “For such investors, the rapid rise in Bitcoin, accompanied by an almost equally sharp correction, is more intriguing than the prospect of sustained growth in property prices”, analysts say.
The new generation chooses the crypto market instead of the real estate market
As various polls show, the desire to accumulate money in order to acquire their own housing has ceased to be among the priority ambitions of the new generation. Millennials show a different investment behavior, preferring good old stocks and gold to brand new assets, including Bitcoin.
The new generation is skeptical about the real estate market, as it is one of the elements of the traditional and undermined the credibility of the global financial and economic system.
In addition to the past crisis, investors are worried about the likely specter of a future recession. An earlier study by eToro showed that in the event of an economic collapse, about 40% of Millennial Americans intend to escape the recession by investing in Bitcoin and other crypto.
Even if there is no recession, traditional ways of saving are increasingly discrediting themselves in the face of new economic policies (negative interest rates) and regulations. This still forces potential investors to think about other, more effective investment strategies. One of them is investing in a new “digital gold” – Bitcoin.
Investing in real estate and crypto are completely different tools that are extremely difficult to compare. Although digital assets can have several advantages over housing.
First, cryptocurrencies benefit in terms of more liquidity. Now it is not so easy to sell an office or an apartment; on average, this process takes two months. In the case of Bitcoin, the opposite is true – you can exchange it for fiat funds instantly, simply by selling it on the exchange. Another advantage of digital assets is their growth in value.
However, the cryptocurrency market is only 12 years old. So, it is extremely young when compared with the centuries-old housing market, and has not yet proven itself.
Although it should be noted that digital assets look more profitable as an investment. The crypto market will gradually gain more and more popularity. And blockchain technology is the future of the entire global financial system.