eToro, a social trading and brokerage company, has emitted two reports on the blockchain industry recently.
One of them is about how Ripple is faring very well in the market this year and the other one is about how Bitcoin is turning out to be a great tool to actually lure investors to other investments, even the more traditional ones.
Bitcoin: The Ultimate Gateway Drug To Stocks?
With a new article named “Bitcoin is the ‘Gateway Drug’ to Stocks and Commodities or millennials’, CCN has covered one of the trends identified by eToro. According to the financial institution, about 73% of the new investors that started accounts on the company in 2017 and 2018 have bought cryptos. After that, around 11% of them decided to try other assets like stocks, forex and commodities.
Diversification was especially prevalent, according to eToro, with millennials. 44% of them decided to start investing in other options as well as crypto. The UK Management Director of eToro, Iqbal Gandham, has affirmed that cryptos made it easier for people to start investing.
They helped to “demystify investing” and after the millennials already knew how to do it, they looked for other options as well.
Adam Dodds, the CEO and founder of Freetrade, agrees. He affirmed recently that the Bitcoin boom helped several millennials to start trading stocks. He compared Bitcoin to “pot” and affirmed that it was a gateway drug but that people went to “something better” instead, implying that stocks are better investments than crypto.
He has also affirmed that it opened up people’s eyes because they realized that they could simply invest in a smarter way after the “crypto fad”, so they did it.
However, reports often show that millennials are considerably more distrustful of traditional investments than older people, which is somewhat understandable because of all the current issues of the market and when these people were born.
A total of 43% of the millennials trust cryptos way more than stock exchanges, which is a great sign. According to them, crypto exchanges are less prone to manipulation because of the immutable nature of the blockchain technology. This way, they believe that it is easier to manipulate the more traditional markets in a meaningful way easily.
This a stark contrast to Generation X, which 77% trusts stock exchanges more than they trust cryptos. Millennials were growing up during the 2008 financial crisis, so they have all the reasons in the world to be concerned about the financial market.
Ripple Had A Great 2019 So Far
In related news, eToro, in another report, has affirmed that Ripple’s XRP had a great 2019 until now. Even with the bear market, XRP’s numbers are pretty solid. Despite also suffering from the crypto winter, the company has managed to keep its trading volumes always up. XRP was the most traded asset on eToro, according to the reports.
eToro traders are using several trading instruments and some of them are investing heavily in oil and gold, but XRP was the top crypto asset nevertheless. In January 2019, XRP had 29,991 unique open trades, which put it ahead of the first and second largest tokens by market cap, Bitcoin (BTC) and Ethereum (ETH), respectively.
Bitcoin had “only” 25,148 unique trades, while even Ethereum surpassed it, with 26,773 unique trades. Four assets managed to be more popular than XRP last month: Oil (35,503 trades), fold (32,484), Apple’s stocks (31,767) and the NSQQ100 index (31,683).
As cryptos are still not being allowed to be traded in all the world at the moment, it is normal that they will not take all the top spaces. However, taking into account how well they are doing at the moment, it doe not seem to be empty speculation to wonder whether they will take the first place soon.