Why investors are swapping lawns for ledgers

Home ownership has become increasingly elusive

A recent survey reported that in New Zealand, just 16% of Kiwis said they could invest a small amount in real estate over time, compared to almost 60% who believe they could do the same in crypto. This isn’t just a statistic; it’s a reflection of the broader economic landscape. In many parts of the world, skyrocketing property prices and stagnant wages have created an insurmountable barrier to homeownership. Unless you have intergenerational wealth, the dream of owning a home is at odds with our current economic reality. Millennials and Gen Z, in particular, are finding it increasingly difficult to save for a down payment, let alone afford monthly mortgage repayments.

Crypto investors are no longer ‘the odd one out’

Once considered the wild west of finance, cryptocurrency has come of age and is no longer the sole domain of tech enthusiasts and libertarians. The asset class has entered the mainstream, with institutional investors, hedge funds, and even traditional banks dipping their toes into the digital currency waters. This institutional interest has lent credibility and stability to the market, making it a more viable alternative investment that could help deliver comparatively outsized gains as part of a portfolio. 

It takes mere minutes (and cents) to invest 

Reputable exchanges have also made buying and selling crypto as easy as shopping online. This accessibility is a game-changer. Unlike real estate, which often requires a significant upfront investment in terms of both finance and time, crypto allows for ‘micro investing’. You don’t need to buy an entire Bitcoin to get started; you can invest as little as you want and gradually increase your stake. What’s more, if you invest regularly, you stand to benefit from dollar-cost-averaging that reduces the impact of market volatility over time.

A new mindset about institutions

The financial crises of the past decades have left a lingering distrust in traditional financial institutions for many and some are increasingly questioning how their investments and money are being used, and who stands to benefit the most from their financial activities.

Crypto, with its promise of decentralisation, transparency, and democratisation, presents an appealing alternative. Unlike traditional banking systems, where a portion of your money might end up lining the pockets of big tech, government and banks, crypto offers a system that many believe to be more free and fair. Transactions are transparent and traceable on the blockchain, giving investors more confidence in how their funds are being handled.

An eye on a ‘bigger prize’

Lastly, GenXers and Boomers, in particular, are looking to supercharge their retirement in an increasingly challenging economic environment. While returns are never guaranteed, and the crypto market is more volatile than other assets, it’s a risk many are willing to take for the possibility of outsized gains. 

While homes have long been seen as the ultimate investment and symbol of financial stability, this perception is changing, and many believe we are at an inflection point in the history of wealth creation and investment. The move from lawns to ledgers is emblematic of a new era of investment -  one that values accessibility, innovation, and transparency. As more people recognise the potential of digital currencies and decentralised finance, we might see a future in which wealth aspirations focus on digital assets over property.