British students are investing more in Bitcoin (BTC)

Thu 02 Sep 2021 ▪ 18h32 ▪ 3 min read — by Siobhan Jones

In 2021, students in the UK are eagerly investing in cryptocurrency to cover their living expenses. According to a survey conducted by British financial advice website Save The Student, the proportion of students investing in crypto has tripled over the past year.

Reasons for investing in cryptocurrency

The study polled 2,038 students from UK universities between May and August 2021. Mental health issues and the consequences of the Covid-19 pandemic were cited as the most common reasons of economic distress. 41% of respondents cited money worries as the primary reason for potentially dropping out of university.

“As we’ve found, the funding on offer to the average student is only slightly more than half of their living costs. With an unstable part-time job market as well as some parents losing earnings due to the pandemic, the usual funding sources for students bridging the finance shortfall have become hard to come by,” said Jake Butler of Save the Student.

However, regulators are warning young people about the risks involved in investing in cryptocurrency. The UK’s Financial Services Authority (FSA) has stated that young people are investing in products for which no one is responsible. To protect citizens, the FSA banned retail investors from purchasing cryptocurrency derivatives and exchange-traded notes last November.

How much money do students need?

On average, young people face monthly living expenses of £810. Research has shown that the typical student is £340 a month short. Possible earnings do not cover the average monthly costs of travel, food and accommodation.

The most likely ways to fill this gap are financial help from parents, part-time work and savings.

Some students said they had found other ways to raise money, from overdrafts and selling property to gambling and taking part in drug trials. Crypto investing remains a niche activity, with 6% of students participating. However, this figure has tripled over the past year.

UK residents’ attitude towards cryptocurrency has changed dramatically. They no longer consider digital assets as speculation and see them as a serious investment option. Whereas last year 38% of people compared the cryptocurrency market to gambling, that figure has now dropped to 9%.

This year in June, Opinium conducted a survey for Interactive Investor private equity platform. The survey involved 1,000 UK respondents between the ages of 18 and 29. 45% of young people chose cryptocurrencies for their first investment. Bitcoin was the undisputed leader among digital assets, with a fifth of respondents having had invested in the largest coin on the crypto market.

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Siobhan Jones

Hi everyone, thanks for reading my article! Join me on my journey to crypto enlightenment, we can always learn something new from each other – no one person has all the knowledge in the world.

DISCLAIMER

The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.

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