Getting to grips with current living costs has been a tough nut to crack, but as it would appear, inflation could still carry on to the unforeseeable future.
Millennial and Gen-Z investors are however forging ways to stave off the pangs of surging living costs, ignoring calls for calm by governments that insist that inflation is transitory.
Fundrise, a leading real estate investment platform recently partnered with DKC Analytics in a survey on investment trends during the ongoing global inflation. Their survey found that a large number of young investors were looking to cryptocurrencies like Bitcoin, Ethereum, Cardano as one of the biggest investment alternatives.
According to the joint report, over 50% of the respondents out of the 1000 Millennials (26-41 years old) and Gen Z (10-25 years) interviewed said that they planned on increasing their allocations to alternative investments. Asked why they considered alternative investments such as cryptocurrencies, nearly 70% of them cited inflation as a top concern.
A deeper search into their investments revealed that 77% of them are currently invested in various stocks, including those linked to cryptocurrencies, while 66% of them are actively investing in real estate, NFTs, and various crypto assets.
“Nearly one-quarter of investors surveyed say cryptocurrency is a safe and stable bet for their money, which served as the most popular response amongst participants,” reads the report.
According to the recent Consumer Price Index (CPI) data, inflation in the U.S. has steadily risen, with the past three months seeing the fastest rate increase.
“Real estate has always been one of the most attractive asset classes for professional investors, but doubly so in inflationary times,” said Fundrise Co-Founder and CEO Ben Miller.
“What’s extraordinary this time around is that millions of Millennial and Gen Z investors are using tech-enabled platforms like Fundrise to actually lead the push into the hottest alternative assets on the market,” he added.
Furthermore, apart from inflation concerns, the survey found that about 65% of young investors were worried about the potential of another covid-19 shutdown which means going down the 2020 covid instigated economic drawdown. 64% of them cited global market uncertainty while 65% expressed concerns about the global supply chain which is already being strained by factors such as the Ukraine- Russia and U.S. tensions.
That said, cryptocurrencies are being viewed as the most stable investment option by these investors given their independence from government control.
According to Ryan Selkis, the founder of Messari crypto, “Crypto investors are the only class of young people who are emotionally equipped to handle the volatility that will result from a change in the global reserve currency.”