With recent talk about a possible recession in 2020, more millennials and Gen Zers are believing that the way to protect themselves and their assets is to turn to cryptocurrencies. This according to a survey conducted by the social investment platform eToro.
The survey, which was released on Tuesday, showed that 70% of the Gen Z and Millennial generations believe that a recession is on the horizon. With continual talk in the media pushing a narrative in the hopes that a recession will occur to derail the re-election campaign of U.S. President Donald Trump, many in the younger generations are fearing that this recession is likely to become a reality.
As a result, these groups are looking to convert their stock portfolios and other similar assets into what they view as safer investments. This includes traditional types of safe investments such as commodities and real estate but also includes crypto assets.
In a press release issued by Guy Hirsch, CEO at eToro, he stated, “We believe that if a recession were to occur, we’d see shrinking stock portfolios and growth in other asset classes like crypto, as well as new fractional ownership models. Historically, these investment opportunities have been limited to high net worth and institutional investors, but innovation is unlocking these opportunities for everyday investors and clearly, these results indicate that the demand is there.”
According to the survey, many are growing leery about a potential trade war between the U.S. and China, as well as voicing concerns about the challenges the country may face in regards to Mexico. While these fears extend across almost all demographics, it was clear that in the younger groups the fears are much more prevalent.