Why is Generation Z choosing to invest in cryptocurrencies over stocks? US survey reveals higher percentage of cryptocurrency holdings than stock holdings.

What do you invest in? Cryptocurrency is the top choice for Generation Z
When it comes to choosing an investment, do you go for stocks or cryptocurrency? While stocks may be the preferred choice for young adults or traditional investors, cryptocurrency seems to be the priority for American youths.
According to a report by The Block, Policygenius conducted a survey in October last year involving 4,063 American adults aged 18 and above. The recently released results showed that among Generation Z (18 to 26-year-olds), 20% of them hold cryptocurrency, while 18% hold stocks. In comparison, among baby boomers, 33% hold stocks, while only 5% hold cryptocurrency. The millennial generation, aged 27 to 42, also showed interest in cryptocurrency, with 22% holding it and 27% holding stocks.


Interestingly, the Financial Industry Regulatory Authority (FINRA) and the CFA Institute also conducted investment surveys last year, and the results showed that about 56% of Generation Z invests, with approximately 55% holding cryptocurrency and 41% holding stocks, aligning with the findings of the Policygenius survey that more people hold cryptocurrency than stocks.
Why do young people choose to invest in cryptocurrency? High interest rates, stagnant wages, and unaffordable housing
Stocks are the largest risk assets globally and the choice for most investors. In contrast, the cryptocurrency market is much smaller, with a total market value of only $2.36 trillion, far lower than the total market value of US stocks at $40.7 trillion. What are the reasons why the American younger generation chooses to invest in cryptocurrency? This report highlights the key factors.
Policygenius points out that due to the high interest rates, stagnant wage growth, and low housing supply in the United States, housing affordability is at its lowest point since the Great Depression, making it difficult for many Americans to afford homes. Among the surveyed Generation Z and millennial adults, only 20% own real estate.
Baby boomers benefit from real estate investments, with a 45% ownership rate. The ownership rates for Generation X and millennials are 28% and 24% respectively. However, for Generation Z, the real estate ownership rate drops sharply to 13%. Policygenius believes that the increasingly severe housing supply shortage may make it difficult for young people to benefit in the same way.
Given the situation of not intending to buy a house or being unable to afford one, it is not surprising that millennials and Generation Z allocate their funds to stocks and cryptocurrency. For Generation Z, cryptocurrency seems to be even more innovative than stocks and has the potential to become a new way of accumulating wealth in the new era. Myles Ma, a certified personal finance advisor at Policygenius, stated, “The younger generation accumulates wealth in different ways compared to Generation X and baby boomers, including new types of investments like cryptocurrency. This may indicate that they are more willing to take risks with their money or may reflect the obstacles they cannot control, such as the increasingly severe housing shortage problem.”
Taiwan’s young people also cannot afford homes! Yuanta Bank: Generation Z becomes virtual asset natives
Taiwanese young people face similar challenges and even embrace the “lying-flat culture,” which means not getting married, not buying houses, not having children, and not working hard. YouTuber Zhiji 77 pointed out in his latest video that wages in Taiwan have stagnated for 20 years, while food prices have increased by about 40%. The uncontrolled rise in housing prices has also caused the ratio of housing prices to income to increase year by year.
Taiwanese born after 1978, although earning lower wages than the previous generation, coincidentally experienced the surge in housing prices in 2002. This group of people who benefit from real estate investments is currently below the age of 46, belonging to the X generation as classified in the United States.
Under the influence of high property prices and stagnant wage growth, a small portion of Generation Z young people are even willing to invest in virtual assets and other new types of investments.
According to a previous survey by Yuanta Bank, among 3,434 valid questionnaires, a staggering 22.4% of Generation Z respondents invested in virtual assets (cryptocurrency, NFT, etc.), accounting for more than 50% of their total assets. Another 13.8% of respondents invested only in virtual assets without any other investment targets. Furthermore, 54.8% of them invested in high-risk meme coins, surpassing the average of the entire generation.


Yuanta Bank described Generation Z as “virtual asset natives,” while the millennial generation (Generation Y) has more than half of its members exposed to virtual assets and is the main force behind virtual assets. They are more concerned about whether the government will have clearer regulatory measures in the future.
From the surveys conducted in the United States and Taiwan, it can be seen that although the economic environments of the two countries may not be exactly the same, they both face high housing prices and stagnant wage growth. This has gradually shifted the investment preferences of the younger generation.
For those of you reading this article, do you prefer investing in cryptocurrency, stocks, or real estate? If you prefer cryptocurrency, what are your reasons? Feel free to share your thoughts in the comments below.
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Cryptocurrency City
Proofreading editor: Gao Jingyuan