A study conducted by Futu, a brokerage firm based in Hong Kong, indicates that Gen Z holds a strong optimism toward cryptocurrency, perceiving Bitcoin as three times more promising than real estate.

According to a fresh survey by Hong Kong’s Futu Securities, Gen Z is radically changing the financial landscape. This generation is shifting away from the conventional aspiration of homeownership and is heavily investing in Bitcoin (BTC) and other digital currencies. The survey reveals that Gen Z is three times more enthusiastic about crypto compared to real estate, highlighting a significant transformation in their perspective on financial stability.

The Standard, a Hong Kong-based newspaper, reports on findings from Futu Securities which indicates that 23% of Gen Z participants feel more secure with merely two Bitcoin in their portfolio than with HK$1 million (approximately $128,400) for a home down payment. In a city where real estate has long been regarded as a marker of wealth and security, this attitude shift is profound.

There are valid reasons for this newfound optimism. In 2024, Bitcoin experienced a staggering 125% increase, surpassing the $100,000 threshold in December before stabilizing around $97,000. On the other hand, the property market in Hong Kong has struggled to achieve comparable returns. Given these figures, it’s easy to see why virtual assets are becoming increasingly appealing to younger generations.

For 45% of Gen Z survey participants, the ease and security associated with cryptocurrency investments outweigh traditional assets like real estate. It’s not just about potential returns — it’s about the flexibility that cryptocurrencies provide, which property ownership simply cannot offer.

Economic uncertainty shifts focus

Many residents of Hong Kong are feeling financially insecure. On average, they rate their financial security at just 6.43 out of 10, as per the survey findings. With a cloud of economic uncertainty looming, over half of the respondents are looking towards investments as a means to generate passive income.

High-income earners, in particular, are embracing a strategy of diversifying into more varied and riskier assets.

  • 25% report having more than five sources of income.
  • 34% invest more than half of their earnings.
  • 42% have ventured into cryptocurrencies, with 66% indicating that they’ve seen profits.

While high earners are at the forefront of this trend, Gen Z is closely trailing behind.

Generational shift

The younger generation is altering the narrative surrounding wealth accumulation. For many in Gen Z, owning property has lost its allure. Instead, possessing “two BTCs” appears to be a more promising route to financial security.

According to the newspaper, this sentiment is fueled not solely by the desire for returns but also by a positive outlook. Gen Z envisions a more optimistic future for virtual assets, expressing excitement over cryptocurrencies for the freedom and flexibility that traditional investments lack.

However, it’s not just the younger crowd. A significant 77% of Gen X — individuals born between 1965 and 1980 — who are already engaging in cryptocurrency investments share a similarly optimistic perspective, particularly regarding Bitcoin’s long-term viability.

In a statement to crypto.news, Vivien Wong, partner liquid fund at HashKey Capital, highlighted how this shift in investor mindset reveals a “captivating interplay of influences.”

“While the tech-savvy individuals are undoubtedly attracted to Bitcoin’s decentralized nature and futuristic appeal, we cannot ignore the fluctuating property prices in Hong Kong’s real estate market over recent years. It’s as if the younger generation, equipped with smartphones and coding skills, is leading a financial revolution, where the charm of virtual assets contrasts with the property market.”

Vivien Wong

Wong also mentioned that the impact of Gen Z goes “beyond social media trends and fashion,” as they possess “substantial disposable income” that is transforming “cultural shifts and financial landscapes.”

“Aligned with values such as transparency, inclusivity, and digital-native tools, Bitcoin resonates with Gen Z’s principles, poised to further enhance the cryptocurrency landscape. This transformation not only points to changing wealth accumulation dynamics but also suggests an intersection of tradition and innovation in contemporary finance.”

Vivien Wong

The report by Futu emphasizes that diversification is essential. Stocks and cryptocurrencies rank as the most favored asset categories for growth. Notably, U.S. stock trading volumes on Futu’s platform surged by 88% in 2024, with sectors such as AI, renewable energy, and healthcare leading the way.

As Alan Tse, Futu’s managing director, articulates, “digital assets are becoming a fundamental component of modern investment portfolios.” Thus, this shift extends beyond mere investments — it signifies a fundamental change in how people in Hong Kong perceive financial security.