In 2021, UK students are investing in cryptocurrencies to cover their living expenses. According to a survey conducted by financial education resource Save The Student, the proportion of students investing in crypto tripled during the year.
Reasons to invest in cryptocurrencies
The study surveyed 2,038 students from UK universities between May and August 2021. Respondents cited mental health issues and the Covid-19 pandemic as the most likely reasons to invest in cryptocurrencies. However, 41% of respondents cited lack of money as a number one problem. Three-quarters of those surveyed said they thought about dropping out because they didn’t have enough money to pay for them.
” The usual sources of student funding are becoming difficult to access due to the volatility of the labor market and because some parents lost their income during the pandemic, ” said Jake Butler of Save the Student.
However, regulators warn young people about the risks of investing in cryptocurrencies. The UK’s Financial Services Authority (FSA) has said that young people invest in products for which no one is responsible. Last November the FSA banned retail investors from buying cryptocurrency derivatives.
How much money do students need ?
On average, young people face monthly living expenses of 810 pounds Sterling ($1120). Research has shown that the typical student is missing 340 pounds per month. Possible income does not cover the average monthly expenses for travel, food and accommodation.
The most likely ways to fill this gap are financial assistance from parents, part-time work and savings.
Some students said they had found other ways to make money, from bank overdrafts and selling real estate to gambling and participating in drug trials. Crypto investing has remained a niche with 6 % of students participating. However, this figure has tripled over the past year.
It is worth noting that the attitude of the inhabitants of the United Kingdom towards cryptocurrencies has changed dramatically. They no longer see digital assets as speculation and see them as a serious investment option. While last year, 38% of people compared the cryptocurrency market to gambling, this figure has now fallen to 9%.
Recall that this June the company Opinium conducted a survey for the direct investment platform Interactive Investor. 1,000 British respondents aged 18-29 took part in this survey. 45% of young people chose cryptocurrencies as their first investment. Bitcoin is the undoubted leader in digital assets, a fifth of those surveyed had already invested in it.
I am sure that blockchain and cryptocurrencies represent the future, and I want to spread this idea to everyone because the more people there will be to believe in cryptocurrencies, the faster the future will come.
DISCLAIMER
The words and opinions expressed in this article are the sole responsibility of the author and should not be considered as investment advice. Conduct your own research before making any investment decisions.
