With an increasingly fragile economy, the feeling of pessimism in Brazil is growing among young people. According to a recent survey by Hashdex and Fundação Getúlio Vargas (FGV), young Brazilians who do not believe in the country’s economy are investing more in cryptoassets.
The survey found that almost half of the respondents feel pessimistic about Brazil’s economic scenario for the next two years. This feeling is greater among younger people, while there is a predominance of optimism among older people.
“The propensity to invest additional income in cryptocurrencies is higher among those with more knowledge about cryptocurrencies, and also who are pessimistic about the Brazilian economy”.
This data also correlated the profile of cryptoasset investors with the prevailing sentiment among respondents. According to the study, cryptoasset investments are higher among young people, who are pessimistic about the Brazilian economy.
In contrast, users between 50 and 59 declared themselves more optimistic about Brazil’s economy and are more likely to invest in the financial market through stocks.
“The optimists regarding the Brazilian economy are the largest group among those who intend to invest in stocks, followed by the neutrals. On the other hand, pessimists predominate among investors in private bonds, foreign exchange, and cryptoassets”.
Lack of knowledge about cryptoassets
Knowledge in cryptoassets can be a challenge for investors who are not yet part of the crypto market. In the Hashdex survey, only 16% of respondents matched the acronyms that correspond to the digital currencies bitcoin, ether and XRP.
Meanwhile, 36.8% of respondents recognized the Bitcoin acronym presented in the survey, and 23.3% of users did not identify any acronyms related to cryptoassets.
“Only 16% of respondents correctly identified acronyms that correspond to cryptocurrencies. More than twice that fraction only signaled bitcoin (BTC), neglecting Ether (ETH) and Ripple (XRP)”.
In total, the survey interviewed 576 users between February and March 2021, who responded about knowledge in finance and the crypto market. With ages ranging from 20 and up, the Hashdex study found that the younger, the greater is the knowledge about the crypto market.
“Groups with 29 years of age or younger demonstrated substantially higher cryptoasset knowledge than older groups. As a rule, the younger the range, the greater the knowledge about cryptocurrencies”.