In the current economic system, homeownership has become an elusive dream for many young people, especially those of Generation Z. According to David Pakman of crypto investment firm CoinFund, rising rents and housing prices have triggered financial psychological uncertainty or a sense of “not having,” which has significantly contributed to an unprecedented surge in the cryptocurrency derivatives market, expected to reach a valuation of $10 trillion. The derivatives market allows investors to buy and sell contracts based on cryptocurrency price fluctuations, aiming for higher profits with lower initial investments. Unlike traditional cryptocurrency trading, this market carries greater risks but also offers the potential for larger returns. The prevailing financial uncertainty and lack of access to conventional investment avenues have drawn young investors toward this market. Generation Z, skilled in technology and digital platforms, views crypto derivatives as a means to achieve substantial profits in a shorter timeframe amid limited opportunities in traditional finance. However, experts caution that such investments involve high risks, and these young investors are exposing their financial futures to potential losses due to market volatility. This surge in the crypto market comes at a time when the global economy faces challenges such as inflation, unemployment, and rising housing costs. These factors have compelled young people to adopt riskier but potentially more lucrative investment strategies. The trend is expected to accelerate in the coming financial years, accompanied by increased financial instability and market fluctuations.
Source: coindesk
