The UK Financial Conduct Authority (FCA) recently released its findings and warned that young people are taking huge risks in cryptocurrency investments, BitFushi reported on March 24. FCA revealed that’new, young and diverse’ investors are participating in’high risk’ investments, and cryptocurrency is included in these investments. According to the results of a survey released on March 23 (local time), FCA said, “Research shows that many investors have feelings like pleasure of investment, and factors such as social status brought about by a sense of belonging to the company in which assets invest. This is the main reason for this investment decision.”
BritishThinks, a global insights strategic consulting firm with FCA, conducted a joint survey of 517 investors in the UK. As a result, it was found that the investors who participated in the response viewed themselves as the subject of investment decisions rather than seeking professional financial advice. Of the respondents who participated in the survey, 218 were 45-64 years old, 53 were 18-29 years old, and 166 were 30-44 years old.
According to this study, compared to older investors who usually accumulate risk over time, self-directed new investors are younger than them, lack understanding of risk, and invest in higher investment risk (e.g. cryptocurrency). It turned out to be highly likely to do. The report pointed out that “part of this is due to the admiration of the cryptocurrency of influential people and experts like Elon Musk.”
# 4 out of 10 “I don’t know the risk of loss”… 78% “Believe in their senses”
The FCA has also found that investors are “full of confidence and understand the situation for themselves,” but are not ready to invest. For example, 4 out of 10 respondents believed that there was no inherent risk of loss when investing. In addition, 78% of investors answered that they’believe in their senses’ when it comes to buying and selling.
This year, young investors from all over the world are actively participating in the investment market. It is also because of the “FOMO” sentiment not to miss market opportunities, and it is mostly young investors who bought stock of gamestop, a video game retailer on the verge of bankruptcy, and raised the company’s share price against the short selling of hedge funds. I heard.
Recently, various apps that shout’financial democratization’ and attract investors without financial knowledge are also very popular. For example, Robinhood allowed users to buy and sell digital assets such as stocks and bitcoins through the app, and it attracted 6 million new customers in 2021 alone.
