Real Estate Out of Reach? Thousands of Young People Are Turning to Crypto to Cope

The conclusions of recent analyses are thought-provoking: what seemed anecdotal a few years ago is now confirmed on a large scale. Behaviors labeled as “desperate” now trace a new path in the financial landscape. Once marginal, crypto is now established as a real escape route for generations excluded from the real estate dream. In the shadow of a crisis that does not name itself, tokens replace bricks. This shift, now documented, redraws the lines of a strained economy.

When traditional finance becomes a maze, cryptos take over

Between soaring rents and frozen wages, the path to ownership resembles a desert crossing. For thousands of young people, classic saving leads nowhere anymore. According to a study, researchers identify a sharp turning point: as soon as the dream of buying fades, the desire to save fades too. Instead, some bet on cryptos, seen as a last lever.

Not out of blind faith in blockchain. But because one has to believe in something when anchors collapse.

Crypto becomes a disruption strategy. It offers the possibility, however slim, to take the social elevator in one transaction. This is summed up by this researchers’ formula: 

Crypto becomes a substitute for the American Dream

This shift is not only American. In South Korea and Japan, the scenario repeats. Young people excluded from the real estate market rush into the crypto market. A survival behavior more than a technophile craze. And this shift redraws the borders of personal finance.

Real estate bubble, social bubble: institutional finance in the crosshairs

The rise of crypto is also explained by the faults of institutional finance. Since 2008, monetary policies have continuously fueled bubbles: artificially low rates, quantitative easing, massive liquidity injections… Result: between 2020 and 2022, real estate prices jumped 40 to 70% in several American cities, as highlighted by Wolf Street.

And while some accumulated assets, others dug deeper into debt.

On X, journalist Ben Norton accuses: 

The US housing bubble popped in 2007-08, causing a massive financial crisis. So what did the US do after? It inflated another housing bubble, which is even bigger now. Because the US economy is a financialized house of cards built on asset price bubbles.

Several voices denounce a perverse dynamic: the rich prosper thanks to cycles of crashes. Others bear the losses.

And when the future closes in, professional engagement collapses. The report draws a direct connection between giving up ownership and the “quiet quitting” phenomenon. Young people stay at work, but without passion. The social contract is broken.

Last ticket for hope: cryptos, risks and temptations

It’s no coincidence that those with assets between $50,000 and $300,000 are the most active in the crypto market. Too solvent to give up entirely, but too poor to access real estate. Trapped in this “no man’s land,” they seek escapes.

And they are not alone: anonymous voices resonate online. On X, a user sums up : 

Let it pop. So much suffering is coming from enabling cheaters be parasitic to eachother. Let the US house of cards self created fall, once and for all.

This silent rage fuels the attraction to cryptos. Not just Bitcoin. Ethereum, Solana, XRP, Dogecoin, Toncoin: all become bets on a better life. A fighting finance, for those whom traditional finance has forgotten.

5 figures and facts to keep in mind:

• +64%: increase in house prices in Austin (TX) between 2020 and 2022;
• +210%: price rise in Sarasota (FL) over 10 years;
• 24%: price drop observed in Austin since the peak;
• $2.25 trillion: assets held by the Fed at the end of 2008 (versus $950 billion in September);
• $50,000 to $300,000: asset bracket with the highest crypto participation.

Because of the crisis, more and more young people seek to reshuffle the cards. They no longer dream of real estate, they dream of returns. Especially when it comes to preparing their retirement differently. And in this new game, crypto is no longer a wild card: it becomes a long-term strategy.