Dame Helena Morrissey, next chair of AJ Bell, a UK investment platform when talking to Financial News implied that, while cryptocurrencies have got more people talking about their finances, adopting an ‘American’ culture towards investing risks tilting consumers towards speculative assets.

Reportedly, those who were time-rich during the pandemic tried to increase their wallet strength during the pandemic by investing in stocks and shares. New generation of investors are who are well versed with digital apps are becoming arm chair investors. There is an increase in the numbers of new retail investors who are self-directed with no expert back up. This in turn will take investors to take more risk than they can practically handle.  Investment in any kind of crypto ends up being speculative.

Many of them are being nagged by their relatives, friends, children and parents who are obsessed about opening a cryptocurrency trading account or wallet to hold Altcoins, meme coins or NFTs.

Cryptocurrency is becoming the key agenda among nascent more so innocent investors who are influenced by group thinkers and group opinions about a particular cryptocurrency. It just looks like the full generation of investors need help in terms of investment.  Many of them cannot differentiate between investment and speculative investment.

The bandwagon of retail investors is moving ahead under the influence of peer confidence. They believe that just because it is growing well today, it will tomorrow also.

Over the years there have been several scandals in the traditional financing industry. People have failed to read the fine print.  Now, in the age of cryptocurrency investing, the warning is clear bright and bold, retail investors are very clear that their entire investment can be in for a doom, but still they choose to move ahead with the risk considering probably – not promised high profits. Trends are scary. The ethics of investment about creating a social change and getting something in return is transiting to profiting from the highs and lows in trend charts with clear reason as to why the price would go up or down.

With the entry point to get in to the cryptocurrencies being as low as what you will pay for a cup of coffee, people are willing to sponsor themselves the risk of speculative investment in the cryptocurrency space.  They are willing to think they have spared the money they would have otherwise spent over a coup of coffee.  It all starts with the few fractions of pennies, but eventually the investment psychology crosses hundreds and thousands in fiat hoping for a fat return.  Speculative investment despite the bold warning signs is catching up.