While many believe that millennials are shifting their focus away from stocks to bitcoin and other investments, the co-founder of popular stock trading app Robinhood isn’t as convinced.
With 78 percent of Robinhood’s more than 2 million customers falling into the millennial category, Tenev’s belief that more conventional investments and technologies will come out on top in the near term is important.
And while digital currencies have hit all-time highs this year, even Coinbase, a digital asset exchange company, warned that investors should still proceed with caution.
“Everyone should have a bit of exposure to digital currencies because [it] looks like [the] future,” said Adam White, head of Coinbase’s GDAX exchange. But there’s “still a very real chance” some of the digital currencies fall “all the way to zero.” He added that people should never invest in what they don’t understand.
In addition, Robert Prechter, who writes about the Elliott Wave Theory that is widely followed by traders, said in July that bitcoin appears to be nearing the fifth and final wave.
Still, the young investors on Robinhood’s platform are leaning toward technology stocks – Apple, AMD and FitBit were the three top-traded stocks on the app in September.