A new survey from eToro suggests that younger online traders’ trust in cryptocurrency exchanges is growing, as many have lost faith in more traditional stock exchanges. In a press release highlighting the survey results, eToro noted that, among Millennial traders, 43 percent place more trust in the new digital currency exchanges than in America’s stock exchanges.
According to the survey, two-thirds of Millennials who actively trade cryptocurrency are more likely to trust crypto than stocks, and a third of Millennials who aren’t involved in crypto trading share those sentiments. That differs sharply from the 77 percent of Generation X traders who reportedly place more trust in those more traditional stock market exchanges.
In an attempt to explain the trend, eToro US Managing Director Guy Hirsch suggested that this generational shift has much to do with how the financial industry and political forces reacted to the financial crisis a decade ago:
"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.
Trust further eroded when Americans saw how hundreds of billions of dollars of taxpayers money are funneled to the largest financial institutions while their savings evaporated and how banks get free money through quantitative easing while their cost of living continued to rise.”
Hirsch predicted that the current shift in attitudes is likely to continue as more investors become aware of blockchain technology and its advantages. The survey found strong demand for incorporating cryptocurrency assets into more traditional investment options like 401k plans, as well as support for crypto lending and crypto products that would allow them to earn interest on assets.