You are here: Home - Investing - Experienced Investor - News -

Young investors fall out of love with bitcoin and meme stocks

0
Written by:
08/09/2021
Two-thirds of millennials and Generation Z who own cryptocurrency or ‘meme’ stocks have either sold all or some of their investments, research has revealed.

A survey by The Royal Mint found more than half (53 per cent) of young investors felt they didn’t gain as much as they had hoped or had lost money with these ‘get rich quick’ assets.

The volatility of cryptocurrencies such as Bitcoin led the Financial Conduct Authority (FCA) to issue a warning to investors earlier this year saying they should be “prepared to lose all their money”.

Meme stocks are shares that have gone viral online and attracted an influx of investors.

GameStop and AMC Entertainment are two of the best-known examples.

These stocks often experience drastic price increases in a short space of time because of hype on forums and social media.

The research found many young people have become disillusioned with these high-risk investments and are turning their attention to lower risk assets such as gold.

More than two thirds (68 percent) of young people are considering investing in precious metals following their experience with cryptocurrencies and meme stocks, the survey found.

Many were drawn to esoteric investments because they were following those around them, rather than basing their decisions on well thought out rationale.

Data shows that Gen Z (those born after 1995) and millennials (those born between 1980 and 1995) regularly base their investing decisions on trending topics both online and on social media.

It comes as Bitcoin, the best-known cryptocurrency, crashed to its lowest level in nearly a month on Tuesday after El Salvador adopted it as legal tender, sparking riots.

Bitcoin prices fell by more than 17 per cent from from $52,000 to under $43,000 before recovering.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Autumn Statement: Everything you need to know at a glance

Yesterday Chancellor Jeremy Hunt made his first fiscal statement in the role, outlining a range of tax measure...

End of Help to Buy: 10 alternatives for first-time buyers

The deadline for Help to Buy Equity Loan applications passed on 31 October. If you’re a first-time buyer who...

Moving to an energy prepayment meter: Everything you need to know

As households struggle with the soaring cost of energy, tens of thousands of billpayers are expected to move o...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week