More than half of millennials and nearly three-quarters of Generation Z are considering including NFTs into their investment portfolios, reveals a new survey.
The findings from a global poll carried out by deVere Group, one of the world鈥檚 leading financial advisory, asset management and fintech organisations, show that 52% of those born between 1980 and 1996, and 74% of those born between 1997 and 2012, would welcome the inclusion of Non-Fungible Tokens (NFTs) into their portfolio mix.
More than 600 of the organisation鈥檚 clients under the age of 42 were surveyed across Europe, North America, Asia, Africa, Australia and Latin America.
An NFT is a digital asset, such as an image, audio clip or GIF, whose ownership is recorded on a tamper-proof digital ledger known as a blockchain.
This emerging asset class took off in a considerable way last year with a digital-only piece of art selling for $69m. Since then, an increasing number of celebrities, and artists, as well as fashion, music, tech and sports brands have been creating, buying and selling NFTs.
According to deVere CEO and founder Nigel Green: 鈥淭he findings of this poll underscore that digital natives 鈥 those who have grown-up immersed in a fully accessible digital life 鈥 understand that unique, highly portable and transferable digital assets have an intrinsic value and that this is a trend that will inevitably grow moving forward.
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鈥淭hey know that how we live, study, work, interact and enjoy downtime is increasingly digitally orientated. As such, it鈥檚 natural to want to take digital representations of fashion brands, music, sport and art into the digital space 鈥 and now we can with NFTs.鈥
He continues: 鈥淐learly, this groundswell of digital engagement is creating new business models across many sectors.
鈥淪ensibly, younger generations 鈥 who instinctively better understand it 鈥 appreciate that, therefore, it鈥檚 going to shape the future of investing.
鈥淭hey鈥檙e keen to have a stakeholding in this new financial ecosystem by including NFTs in their portfolios.
鈥淲e expect this could be a sound strategy. Not only because NFTs are likely to be an intrinsic component of the global digital architecture of the future, but also because this hot new asset class can act as a major diversifier in investment portfolios.鈥
This last reason, says Nigel Green, is arguably the most important for the majority of investors.
鈥淧roper diversification of a portfolio across asset class, sector, region, and currency is the best way an investor can best position themselves to mitigate risks and to seize opportunities when they are presented.
鈥淣FTs have a very low correlation to other assets, such as stocks and bonds, and can, therefore, lower your portfolio鈥檚 overall risk and volatility levels.鈥
As NFTs become increasingly mainstream by those wanting to seriously build wealth for the long-term, earlier this month, deVere Group launched dV Gems, a non-fungible token (NFT) platform that aims to give investors access to an emerging asset class and streamline digital ownership.
At the time of the launch, the CEO noted: 鈥渄eVere has always been ahead of the trend in financial services. Our new NFT platform is another first.
鈥淯niquely positioned to help investors see value and opportunity in a digital financial era, dV Gems will provide immediate access to the decade鈥檚 hottest emerging asset class 鈥 an asset class that will become a standard feature of investment portfolios within a few years.鈥
Of the findings of the recent poll of clients, Nigel Green concludes: 鈥淎s the token economy and decentralised technologies develop at pace, the huge investment potential between millennials, Gen Z and NFTs looks ever-more undeniable.
鈥淣o longer content to consider only traditional portfolio components, such as stocks and bonds, younger generations are set to own a raft of different digital assets too. And this makes sense in today鈥檚 world.鈥