A recent study from the University of Georgia shows a high correlation between social media use and crypto investment. The study, published in the International Journal of Bank Marketing, aims to analyze the influence of social media on investors’ behaviour towards cryptocurrencies. The research done by Kyoung Tae Kim and Lu Fan investigates the connection between time spent on social media and the propensity of people to invest in cryptocurrencies. The study shows that social media significantly influences investment decisions, including risky ones such as cryptocurrencies. Cryptocurrencies remain rather popular, even though they are characterized by high fluctuations. This study demonstrates that social media is one of the key determinants of investors’ perceptions and behaviour. The study also shows that investors who gain their information through social media are likely to invest in cryptocurrencies and view future investment in this area positively. The role of social media platforms One of the key insights of the research is the differential effect of different social media platforms on cryptocurrency investment behaviour. The study revealed that the probability of people investing in cryptocurrency grows with the number of platforms used. Some platforms seem to promote a higher level of confidence when it comes to investing, as conversations regarding cryptocurrency are often enough to sway users. According to one of the researchers, Lu Fan, the discussion surrounding cryptocurrencies has been on the rise, especially with the celebrities on social networks. He notes that many people are motivated by the desire to imitate their friends and relatives or even celebrities who also invest in the same business. Youth and financial literacy The study also shows that there is one significant pattern among young people. This study showed that the younger population is not only the main consumer of social media but also the main investor in cryptocurrencies. However, this group might not be well informed on financial matters, which may make them very sensitive to social media influence. Fan underscores the need for young adults, especially those who lack sufficient experience in handling money, to be well-guided in making the right investment decisions. He points out that while information on social media can be useful, it can also lead to investment decisions made based on hype rather than knowledge of the financial markets. The number of young adults investing in cryptocurrencies is on the rise every day across the globe. According to Bappebti, Indonesia’s commodity futures trading regulatory agency, 62% of Indonesia’s crypto investors were between 18 and 30 years old as of October 2024. This trend is in line with young people from Indonesia investing in cryptocurrencies, with 26.9% of investors being 18-24 years old and 35.1% being 25-30 years old. According to a study from Bitget Research, Generation Z and the Millennial generation are becoming more interested in cryptocurrencies. The research further found that 20% of Gen Z is the most targeted group of crypto scams. However, this group is still interested in crypto and its opportunities, especially as a means of payment. Cryptocurrency adoption This is not a trend that is limited to Asia only, as more and more young people are using cryptocurrencies. Telegram-based crypto communities in Africa expanded by 189% from the beginning of 2023 to 2024, and over 56% of its users are below 25 years old. Young people in Europe are also participating, with 32% of Millennials and 29% of Gen Z investing in cryptocurrencies, according to a 2024 study by Bitpanda and YouGov. Cryptocurrency adoption is also increasing at a faster rate than both mobile phones and the internet worldwide. According to BlackRock’s Jay Jacobs, mobile phones took 21 years and the internet 15 years to garner 300 million users, while cryptocurrencies reached the same number in just 12 years. Bitcoin stands out with a $2 trillion market cap and still leads the industry as the demand for decentralized assets grows in a digital economy. A Step-By-Step System To Launching Your Web3 Career and Landing High-Paying Crypto Jobs in 90 Days.
