Driven by Financial Anxiety, Underpaid Young People Bets on Cryptocurrency - Survey

John Lopez, Tech Times 04 December 2022, 02:12 pm

In the face of cryptocurrency platforms breaking down left and right, young Singaporean investors remain keen on betting on the digital coin. A report from The Straits Times tells us that many people are not turning their backs on crypto amid distressing accounts of people who fell victim to these platforms collapsing.

Can you make money betting on cryptocurrency? Crypto success stories are not that rare. A brief Internet search reveals that there are ordinary folks who are clever enough to recognize the potential of an investment that some top financial gurus still don't completely comprehend.

Something is riveting about risking so much to invest in this volatile market for this new generation of crypto followers. This is understandable, given the potential for a digital coin's value to skyrocket instantly.

For instance, Dogecoin, a digital coin inspired by internet memes of the Shiba Inu dog breed, has been surprising investors lately due to its sudden market boom. If you have $1000 invested in the digital coin two years ago, you could be a millionaire now. This is possible because of a mind-boggling gain of 200,000 percent.

A potential for a sudden massive price pump is the crypto promise these individuals hold on to. And some are even aggressively betting on virtual currencies in the hopes of retiring early. Is it possible?

Bet on the Digital Coin

A survey by OCBC Bank emphasized how more young people are hooked on the crypto culture. According to the study, almost 85 percent of individuals in their 20s have already invested. This considerably increased from 2020, when the survey noted 64 percent.

OCBC Bank's survey of young Singaporeans in their 20s and 30s also found that 40% were still determined to wager on cryptocurrencies in 2023. The study was carried out in August, roughly three months before FTX filed for bankruptcy. Therefore, it is uncertain whether such investors will still bravely enter such financial ruin.

Everyone is seeking a means to become wealthy, and these people think cryptocurrency can solve their money woes.

Financial Worries

OCBC has some startling findings from the survey. According to the bank, many individuals surveyed tended to rush into riskier investments out of anxiety that they might not make enough money from their jobs.

The bank stated, "Their worries might put them in a rush to build up their nest egg, but they might not be making informed investment decisions,"

Based on data from The London Institute of Banking and Finance's most recent Young Persons' Money Index, a startling 81% of young people experience financial anxiety. This is a 14% improvement over last year, and the best result since LIBF began asking the topic in 2016 (60%).

Money worries and a lack of financial education are a dangerous combination.

"Most young people don't have the financial knowledge or confidence they need. Even before they leave school, they're vulnerable to scams and fraud," Catherine Winter, managing director of financial capability at LIBF noted.