40% of millennials to invest in cryptocurrencies to hedge agains a recession - Survey

Two-thirds of American investors are anxious about a looming recession and are ready to transfer their assets to safe-haven assets, including cryptocurrency. These results are revealed by survey conducted by a social investment platform eToro.

Respondents believe that the trade conflict between the US and China, as well as problems with Mexico, will affect their portfolios over the next six months. THus, investors are looking for alternatives to hedge risks. 

Notably, 40% of millennials (i.e. young people born in the period 1980-1994) preferred cryptocurrencies.

Representatives of “Generation X” born between 1965 and 1979 would spend money to goods, and every second respondent of “Generation Z” (from 1995 and later) chose to invest in real estate.

"We believe that if a recession were to occur, we'd see shrinking stock portfolios and growth in other asset classes like crypto, as well as new fractional ownership models. Historically, these investment opportunities have been limited to high net worth and institutional investors, but innovation is unlocking these opportunities for everyday investors and clearly, these results indicate that the demand is there," Guy Hirsch, Executive Director of eToro in the USA commented.

In total, more than a thousand investors took part in the company's survey.

Notably, Bitcoin is often regarded as a hedge against global risks amid ongoing trade war between China and USA. Some analysts believe that the escalation of the conflict will push cryptocurrency towards new highs.