Gen Z prefers investing in Bitcoin over buying real estate
What young people invest in
In Hong Kong, Gen Z is rethinking financial priorities, favoring Bitcoin over traditional assets like real estate. This trend was highlighted in a survey conducted by local brokerage firm Futu.
According to Crypto.news, the study revealed that younger generations see three times more potential in Bitcoin compared to real estate, signaling a major shift in how they approach wealth accumulation and financial security.
Notably, 23% of Gen Z respondents feel more confident holding two Bitcoin in their portfolio than having $128,400 for a down payment on a house. This shift in mindset is significant in Hong Kong, where property has long been a symbol of wealth and stability.
Bitcoin’s impressive performance in 2024, with its price surging by 125% and exceeding $100,000, has been a key driver of this optimism, especially in contrast to the underperforming real estate market. Convenience, security, and flexibility have also contributed to the popularity of cryptocurrencies, with 45% of Gen Z preferring virtual assets over traditional real estate.
Investment trends in Hong Kong
The survey also highlights broader financial trends in Hong Kong. Many residents are turning to investment tools to generate passive income amidst economic uncertainty, with the average financial confidence score at 6.43 out of 10. High-income investors, in particular, are taking the lead:
- 25% have more than five sources of income.
- 34% invest over half of their earnings.
- 42% have already invested in cryptocurrencies, with 66% reporting profits.
Vivien Wong, a partner at HashKey Capital, believes these changes reflect a combination of tech-savvy confidence in Bitcoin and dissatisfaction with Hong Kong's volatile property market. She emphasizes that Bitcoin aligns with Gen Z's values of transparency and inclusivity, shaping a new paradigm of wealth accumulation.
Meanwhile, Singapore has emerged as a regional leader in attracting digital asset companies, issuing 13 cryptocurrency licenses in 2024, more than doubling last year’s figure.
