- Gen Z tends to go for high-risk investments over traditional investments.
- A high-risk investment is preferred for Gen Z, over, working at a company, because it provides equal uncertainty for the future life, but is better in return.
- Technology is everything more important over its risks given by it within an investment, point of view as a Gen Z
No one ever would have imagined that members of Generation Z would struggle to find work after graduating from the university. Too many young graduates with comparable or identical qualifications graduated at the same time, tightening the labor market. According to the Financial Times, because of the fierce rivalry for desirable job positions, recent graduates are increasingly turning to new sources of income. It's a high-risk, high-reward situation. This is how cryptography functions. New grads are more likely to be enticed to make quick money by investing in crypto than to wait through the uncertainty of waiting for a call from a recruiter.
According to a new CNBC Millionaire Survey, nearly half of millennial millionaires had at least 25% of their wealth in cryptocurrency. Moreover, a third of millennial millionaires hold at least half of their wealth in crypto, with about half of them owning NFTs. However, why are these young graduates less likely to invest in a traditional manner, as many others have done? What is it that draws them here? One of the reasons why young people are interested in alternative investments such as cryptocurrency is simple: Many people have lost faith in traditional financial institutions. Furthermore, many people have a truly positive attitude toward blockchain technology. At the same time as they are dissatisfied with traditional investments. Many people are finding community, and even joy, in the crypto world. They want to put money into it.
Furthermore, the reasons why many new graduates nowadays opt to invest rather than work in a genuine organization are also answered by the factors listed above. Whereas people in their 30s and 40s choose to put their money into a steady or low-risk investment to ensure their retirement, these young people prefer to put their money into high-risk investments that they regard as more promising for their future. With limited funds and rising asset values, it's easy to grasp the appeal of betting on high-risk assets in the hopes of winning big. Cryptocurrency, peer-to-peer lending, and using trading apps and spread betting sites to make short-term bets on stocks and foreign exchange are more akin to gambling than investing, but given the lackluster returns elsewhere, young people are enticed to go "all or nothing." Rather than investing in both real estate and retirement, many young professionals choose one to focus on. It's difficult to choose which to prioritize, but at least they have an option. As the cost of living continues to rise, it may well be neither for many young employees on lower wages. Overall, returning to the advantages of "high risk, high return" on investment, these all stem from people's burgeoning interest in technology. They knew it was hazardous, but they figured it was better to try anything than nothing, and even if it failed, they'd at least be doing something they enjoyed in the field by themselves.