In 2021, UK students are investing in cryptocurrencies to cover their living costs. According to a survey conducted by financial education resource Save The Student, the proportion of students investing in crypto tripled during the year.
Reasons to invest in cryptocurrencies
As part of the study, 2,038 UK university students were interviewed between May and August 2021. Respondents cited mental health issues and the Covid-19 pandemic as the most likely reasons to invest in cryptocurrencies. However, 41% of those surveyed cited lack of money as a number one problem. Three-quarters of those surveyed said they had considered dropping out of school because they did not have enough money to pay for it.
“The usual sources of funding for students are becoming difficult to access due to the volatility of the job market and because some parents lost their income during the pandemic,” said Jake Butler of Save the Student.
However, regulators are warning young people about the risks of investing in cryptocurrencies. The UK’s Financial Services Authority (FSA) said young people invest in products for which no one is responsible. Last November the FSA banned retail investors from buying cryptocurrency derivatives.
How Much Money Do Students Need?
On average, young people face a monthly living expense of 810 pounds sterling ($ 1,120). Research has shown that the typical student is missing £ 340 per month. Possible income does not cover the average monthly cost of travel, food and accommodation.
The most likely ways to fill this gap are financial support from parents, part-time work, and savings.
Some students said they found other ways to make money, from bank overdrafts and selling real estate to gambling and participating in drug trials. Crypto investing has remained a niche with 6% of students participating. However, this figure has tripled over the past year.
It is worth noting that the attitude of the people of the United Kingdom towards cryptocurrencies has changed dramatically. They no longer see digital assets as speculation and see them as a serious investment option. While last year 38% of people compared the cryptocurrency market to gambling, that number has now dropped to 9%.
Remember that this June the company Opinium conducted a survey for the direct investment platform Interactive Investor. 1,000 British respondents aged 18 to 29 took part in this survey. 45% of young people have chosen cryptocurrencies as their first investment. Bitcoin is the undisputed leader of digital assets, a fifth of those surveyed had already invested in it.
