When previous generations (mid-1980s to mid-1990s) and boomers (now 40s and 50s) thought about investing, the real estate and stock market usually appeared on the wallpaper. Including a collection of durable items that gain value over time, such as clocks, paintings, books, or vinyl records.
Generation Z differs from previous generations in that almost everything it invests and accumulates has a digital dimension – except for cryptocurrencies, NFT digital tokens are very popular among Zetek, for example, can be a way to own. a work of art.
Careless Risk Assessment
The BBC website describes the work of a young investor – Paxton, who bought bitcoin for $ 1,000 a little over a year ago and immediately earned 10%. In a short time, the young investment quadrupled the value of its portfolio, but soon the price of the world’s most popular cryptocurrency began to fall sharply.
In a fit of rage, he sold most of his assets and told the BBC that the cryptocurrency market had a very bad emotional impact on him. He lost thousands of dollars.
Paxton’s story is no exception to the cryptocurrency scene – a similar fate befell many people who overestimated the stability of bitcoin and other digital tokens and acted like traditional investment resources.
Another interviewee of the British broadcaster admits that he “lost everything”.
“I thought I was the king of investment and I was really crazy, nothing could stop me, I kept buying,” he says.
In the end, according to the site, the man ended up with only a few hundred dollars in his account, which for him resulted in suicidal thoughts and severe depression.
Why is cryptocurrency investing so attractive?
The BBC notes that investment gambling for young people can be a very attractive element of the game on cryptocurrency exchanges. For many of them, investing in cryptocurrencies is like gambling without risk.
Both cryptocurrencies and NFT can then be sold and used in the virtual world of which they are a part – for example, to purchase goods in emerging metaverses.
The BBC believes that the popularity of NFT in the younger generation has significantly increased the coronavirus pandemic. All thanks to investment games, which have become a kind of entertainment for young people locked in their homes, and often the only way out of the real world.
At the same time, the market was very volatile, which became a great opportunity for newcomers.
Investment school from Instagram
Where do young people learn to invest? As you can easily guess – mainly from social media, where influencers teach them to invest in YouTube and Instagram channels or profiles on networks such as Twitter and Reddit.
Millions of viewers often subscribe to cryptocurrency “educator” channels, and many are reluctant to talk about the risks associated with the cryptocurrency market, working with exchanges that allow the purchase and sale of digital tokens on promotional contracts.
Can investments be addictive?
British public service highlights another aspect of the problem, which could be too early for the younger generation to move into the world of cryptocurrency investments. This is an addiction that compulsive gamblers endure.
Andy Leach of Singapore’s Visions by Promises addiction clinic, quoted by the website, says there has been a significant increase in the number of customers who say they are addicted to the excitement and emotion of investing in cryptocurrencies and NFT. They are primarily young men who can spend their days according to token value schedules and experience the emotional roller coaster associated with it.
According to the expert, the line between passion and dependence is as fluid as the exchange rates of popular cryptocurrencies – and this is another risk that young people should be aware of.
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