Nearly half of millennial investors in the United States have more confidence in crypto exchanges over stock market exchanges. However, stock exchanges still have tremendous influence and could boost crypto adoption if they offered crypto investment options.
43 percent of millennial investors trust crypto exchanges
The data supporting this theory was contained in a new survey published by investment platform eToro on February 19. According to the study, 43 percent of the respondents have more trust in cryptocurrency exchanges over the traditional stock market exchanges. However, the reputation of conventional stock exchanges is an attractive feature for millennial cryptocurrency traders, with 93 percent of them saying they would invest more in cryptocurrencies if traditional financial institutions offered such an option. In addition to that, 71 percent of millennials that do not trade digital currencies say they would venture into crypto if the traditional stock exchanges offered them.
Guy Hirsch, the Managing Director of eToro US, said the financial market is currently undergoing a generational shift in trust from the stock exchanges to crypto exchanges. “Immutability is native to blockchains, and that makes real-time audit to be sensible and cost-effective, and that is why millennials and Gen X perceive crypto exchanges as less likely to be subject to manipulation and less likely to be a place where bad actors get rewarded with taxpayer money,” Hirsch said.
Digital currencies are currently considered as retirement options by the Virginia Pension Funds, with 45 percent of respondents expressed interest in assigning cryptos into their 401(k) retirement savings plans, and 74 percent of crypto traders expressed the desire to receive crypto options from their 401(k) plan providers.
Market research and strategy firm Provoke Insights conducted the survey for eToro in September last year. The company surveyed over a thousand online investors between the age of 20 and 65.
Traders still trust exchanges despite several attacks over the years
Cryptocurrency traders still have high confidence in cryptocurrency exchanges despite the several cyber attacks recorded over the past few years. Last month, peer-to-peer Bitcoin trading platform, LocalBitcoins, suffered a security breach leading to a few accounts being compromised in the process. A few weeks ago, a blockchain analytics firm Chainalysis reported that two groups have stolen over a billion dollars’ worth of cryptocurrencies over the past few years, and the funds were cashed out via crypto exchanges. The inability of crypto exchange QuadrigaCX to repay 190 million USD to clients after the death of its founder is another case that recently attracted negative attention to the crypto community.