Cryptocurrencies continue to grow in popularity and social media has been found to be a contributing factor.
Though the digital currency marketplace is considered to be a high risk investment, the
popularity of cryptocurrency continues to rise. Social Media platforms such as YouTube, ‘X’ formerly known as Twitter, and Reddit seem to be emboldening young adults to invest.
In a study conducted by Lu Fan, a UGA associate professor from the College of Family and Consumer Science, it was discovered that investors who had looked to social media for investment information were more likely to invest in cryptocurrencies.
Of those most likely to invest, including men and those considered to have high risk tolerance, young adults were seen as the most vulnerable population among investors. As the majority users of social media, young adults might be more susceptible to fraud and bad investment advice. However, those with higher education levels were least likely to invest.
Fan, along with other researchers, have encouraged lawmakers to take these findings into account while they craft regulations for cryptocurrency. They have also encouraged an increase in media literacy education.
While social media serves a multitude of purposes, it can create a false sense of confidence in some when it comes to investing.
