Nearly half of UK residents (45%) aged 18-29 admitted that their first investment was in digital assets. However, more than 50% of young people used borrowed funds for this.
A recent survey by Opinium for the investment platform Interactive Investor found that Bitcoin (BTC) is by far the most popular among young people, with over 20% invested in it. Interestingly, the Dogecoin meme coin has also become one of the most popular cryptocurrencies.
At the same time, 56% of participants noted that they used borrowed funds for crypto investments. For the first placement of funds in digital assets, 23% of respondents used credit cards, 17% resorted to student loans. Another 16% used a loan of a different type.
Personal finance consultant at Interactive Investor, Myron Jobson, described this percentage as depressing:
“Young people using credit cards, student loans and other forms of debt to invest is a worrying trend.”
He warned young people that huge debt could negatively affect their credit ratings and therefore create financial difficulties later in life.
20% of those surveyed said they would keep their savings for a 10-year period.
It seems that interest among Britons in cryptocurrency has risen, as a recent study found that about 78% of adults have heard of digital assets. What’s more, nearly 2.3 million people owned virtual currencies at one point or another.
It is worth noting that the attitude of UK residents towards cryptocurrency has changed a lot. They no longer view cryptocurrencies as speculative assets and see them as a serious investment option that serves as an alternative to traditional investments. If last year 38% of people compared the cryptocurrency market with gambling, now this percentage has dropped to 9%.
Interestingly, the number of cryptocurrency investors who check their balances daily has increased to 29%, or more than doubled from 13% in 2020. In addition, the survey showed that almost 50% of cryptocurrency holders plan to increase their assets, believing that “at some point they will make money.”