A recent study suggests that many Portuguese investors choose crypto currency to save their money. Portugal is one of the European countries to use crypto to save money.
43% Portuguese Use Crypto Currency
A recent report ‘Blackrock People and Money 2024’ suggests that 43% of Portuguese are using crypto to save money. This statistic is double that of Europe where the average is 22%. The report stated that these statistics rank Portugal ahead of many other countries like the Netherlands (40 %) and Switzerland (34 %). The report stated:
We are seeing a shift towards cryptocurrencies in Europe, as just over one in five investors indicated investing in cryptocurrencies.
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The director of Blackrock in Portugal, André Themudo thinks that more Portuguese using crypto is a sign of weak financial literacy in the country. The report also states the same opinion in conclusion. It is concluded by the report that most of the young generation is involved with crypto assets. They are the ones who invest in crypto even though they have no financial knowledge to invest. A management company in the report stated:
Those with more financial literacy will invest less in crypto assets. [The young generation] reports that they do not have enough financial knowledge to invest.
Many Portuguese people know the risks involved in cryptocurrency, yet they are more interested in investing. The popularity of crypto activities is more among young investors. This is why more than 50 % of the financial resources of Portuguese families are saved in banks.
Portugal Had Biggest Drop In 2 Years
This report was studied to check all the people who have invested in stocks, mutual funds, bonds, investments, and other related issues. Those people who kept their savings in bank deposits were not considered in this report as investors. The purpose of the report was to check who is investing more in cryptocurrency. The report has concluded that 43% of the Portuguese are using cryptocurrency as a source to save their money.
It can be one of the main reasons why Portugal has faced some drop in new investors between the period of 2022 to 2024. During the last two years, Portugal was one of three countries that were analyzed for the reduction of new investors. It also saw the biggest drop in new investors of around 12 % for the last two years.
Reason For Reduced New Investors
Portugal is facing a lack of new investors in the last two years. The reason for this can be due to the financial and educational situation within the country. According to the survey of people who do not invest, 69 % of the people have been informed that they do not invest due to lack of money. The same survey in Europe had an average of 65 % of people who stated that they do not invest due to lack of money.
The report suggests that the reason for not investing may be due to economic difficulties. It may be possible that the Portuguese people might not be able to invest as compared to the other European people. Although, there are a lot of solutions that offer investment plans. One option is to take a loan from the bank for the sake of investment and return the money to the bank monthly. Some investment plans even begin from a very low amount. The report suggests that there should be financial education for the Portuguese students as well as the public. This can help bring more investors into the future, which will strengthen the economy of the country. The report stated:
The survey results highlight the need for greater financial education in Portugal, allowing investors to start with just 1 euro investment through various digital investment applications that offer access to a wide range of profitable opportunities.
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