{"id":171414,"date":"2021-02-05T08:05:00","date_gmt":"2021-02-05T05:05:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/overconfidence-why-its-mostly-men-under-30-trading-bitcoin\/"},"modified":"2021-02-05T08:05:00","modified_gmt":"2021-02-05T05:05:00","slug":"overconfidence-why-its-mostly-men-under-30-trading-bitcoin","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/overconfidence-why-its-mostly-men-under-30-trading-bitcoin\/","title":{"rendered":"#: \u2018Overconfidence\u2019: Why it\u2019s mostly men under 30 trading bitcoin"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a38314f880ca\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a38314f880ca\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/overconfidence-why-its-mostly-men-under-30-trading-bitcoin\/#Data_provided_to_MarketWatch_give_new_insights_into_who_is_trading_the_crypto_asset\" >Data provided to MarketWatch give new insights into who is trading the crypto asset<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/overconfidence-why-its-mostly-men-under-30-trading-bitcoin\/#Jack_Denton\" >Jack Denton<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong>#: \u2018Overconfidence\u2019: Why it\u2019s mostly men under 30 trading bitcoin<\/strong>&#8221;<\/p>\n<h2 class=\"article__subhead\" itemprop=\"alternativeHeadline\"><span class=\"ez-toc-section\" id=\"Data_provided_to_MarketWatch_give_new_insights_into_who_is_trading_the_crypto_asset\"><\/span>\n  Data provided to MarketWatch give new insights into who is trading the crypto asset<br \/>\n<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><\/p>\n<div class=\"column column--full article__content\">\n<div id=\"js-article__body\" class=\"article__body article-wrap at16-col16 barrons-article-wrap\" itemprop=\"articleBody\" data-sbid=\"WP-MKTW-0000151767\">\n<div class=\"barrons-article-ad-wrapper\">\n<div data-track=\"barrons-article-ad-wrap\" class=\"barrons-article-ad sticky_item\">\n<div class=\"barrons-main-article-ad-target sticky_target body_ad\" aria-hidden=\"true\"><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p>       Already, the frenzy over WallStreetBets and <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/game\/\" data-internallinksmanager029f6b8e52c=\"7\" title=\"Game\" target=\"_blank\" rel=\"noopener\">Game<\/a>Stop is beginning to fade. In its wake, financial markets should be reminded that the most enduring retail investing mania over the last few months has focused on bitcoin.<\/p>\n<p> Much has been written about how institutional investors propelled bitcoin<br \/>\n        BTCUSD,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/31322028\/realtime\" class=\"negative\">-0.41%<\/bg-quote><br \/>\n       to spectacular highs, with the crypto asset gaining as much as 400% from the beginning of 2020 to its peak in early January 2021.<\/p>\n<div class=\"paywall\">\n       Payments giant PayPal<br \/>\n        PYPL,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/208054269\/composite\" class=\"positive\">+7.36%<\/bg-quote><br \/>\n       now offers bitcoin services. BlackRock<br \/>\n        BLK,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/207946232\/composite\" class=\"positive\">+1.16%<\/bg-quote><span>,<\/span><br \/>\n       the epitome of institutional money, is set to offer clients exposure to crypto futures through new funds. But retail investors form a crucial part of the bitcoin trend.\u00a0<\/p>\n<p>It is retail investors targeted by tabloid headlines <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.express.co.uk\/finance\/city\/1385577\/bitcoin-news-value-surge-cryptocurrency-collapse-money-investment-spt\" class=\"icon none\">suggesting that bitcoin will hit $1 million<\/a>. They are the same investors warned by regulators that they \u201cshould be prepared to lose all their money\u201d from crypto investments.<\/p>\n<p>And according to a bitcoin-focused U.K. fintech with tens of thousands of users, women and older investors are largely staying out of the crypto frenzy, leaving young men to be significantly overrepresented.<\/p>\n<p>Mode<br \/>\n        MODE,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/221549028\/delayed\" class=\"negative\">-1.96%<\/bg-quote><span>,<\/span><br \/>\n       which provided data on its user base to MarketWatch, allows users to buy and trade bitcoin as well as hold the crypto asset in an interest-generating account.<\/p>\n<p>The overwhelming majority of people using its <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a> are men, making up 79% of users to just 21% women. Compared with the most recent data from the U.K.\u2019s Office for National Statistics, or ONS, this makes the gender divide among Mode\u2019s bitcoin holders even wider than with other investments.<\/p>\n<p>In the tax year 2017-2018, 2.3 million people had an Individual Savings Account, or ISA, with stocks and shares. ISAs are the popular tax-free account available to residents of the U.K. Of those, more than 1 million, or 44%, were held by women.<\/p>\n<p><strong>Also read:<\/strong> This fund is betting millions on Kentucky whiskey and turning it into crypto assets. Here\u2019s why<\/p>\n<p>The data from the ONS are very consistent with investing demographics in the wider population, according to <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/LisaKramer\" class=\"icon none\">Lisa Kramer, a professor of finance at the University of Toronto<\/a> and an expert in investor behavior. Mode\u2019s demographics aren\u2019t.<\/p>\n<div id=\"cx-membership-tile\"><\/div>\n<p>Kramer said that when she looks at the differences between the ISA numbers and Mode\u2019s user base, she wonders \u201cif part of what we\u2019re seeing isn\u2019t driven by investor overconfidence.\u201d<\/p>\n<p>This is linked to gender, Kramer said, pointing toward <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.researchgate.net\/publication\/24091730_Boys_Will_Be_Boys_Gender_Overconfidence_And_Common_Stock_Investment\" class=\"icon none\">a landmark piece of behavioral finance research<\/a> from 2001 titled \u2014 very aptly \u2014 \u201cBoys Will Be Boys: Gender, Overconfidence, and Common Stock Investment,\u201d written by University of California professors Brad M. Barber and Terrance Odean.\u00a0<\/p>\n<p>Barber and Odean found that men trade stocks 45% more frequently than women, which is a symptom of overconfidence because overconfident investors trade excessively.\u00a0<\/p>\n<p>In 2001, these findings manifested in lower investment returns for men due to brokerage trading fees. In 2021, it may be extended to men getting involved in dangerously speculative rallies.<\/p>\n<p><strong>Plus:<\/strong> Bitcoin and its \u2018funny business\u2019 should be regulated globally, says European Central Bank chief<\/p>\n<p>\u201cIf we see from that research study that men are, on average, more inclined to be overconfident, that overconfidence could be helping to drive the heavier representation of men in these much more speculative markets,\u201d Kramer said. <\/p>\n<p>\u201cIt really takes a bit of a hope and a prayer to believe that these assets are going to be long-term, reliable investment performers.\u201d<\/p>\n<p>Mode\u2019s user base also reveals a stark age divide among bitcoin investors. People aged 30 years old and younger represent 64% of the app\u2019s users, with 86% of Mode\u2019s clients falling under the age of 41.<\/p>\n<p>This makes young people grossly overrepresented in bitcoin trading. According to the ONS data, 563,000 people aged 44 years old and younger held stocks and shares ISAs, which was just 24% of all investors.<\/p>\n<p>Kramer said it was possible that younger investors may be more drawn to a <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/technology\/\" data-internallinksmanager029f6b8e52c=\"4\" title=\"Technology\" target=\"_blank\" rel=\"noopener\">technology<\/a>-based investment like bitcoin than their older counterparts. It may also be the case that younger investors are more likely to use an app to trade.<\/p>\n<p>However, Kramer believes the root of the age divide is behavior.<\/p>\n<p>\u201cThis new generation of investors maybe hasn\u2019t experienced the financial crisis of 2007 and 2008. They also haven\u2019t experienced the internet boom of the late \u201990s, and the subsequent crash of 2000,\u201d Kramer said.<\/p>\n<p>\u201cWhereas the older generations of investors \u2014 they have been bitten before, and they are a little bit less inclined to jump into the latest market frenzy, a little bit more cautious in <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/general\/\" data-internallinksmanager029f6b8e52c=\"3\" title=\"General\" target=\"_blank\" rel=\"noopener\">general<\/a>, and more inclined to understand the merits of a diversified investment portfolio and avoiding trying to market-time,\u201d she added.<\/p>\n<p><strong>More on blockchain:<\/strong> Crypto tech vs. COVID-19: How hospitals are using blockchain in the vaccine rollout<\/p>\n<p>Aside from demographics, the data Mode provided to MarketWatch also offer insights into how investors reacted to bitcoin\u2019s volatile trading in January this year.<\/p>\n<p>In the volatile period between Jan. 4 and Jan. 13, bitcoin ran up to a peak of $41,940 on Jan. 8, <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.coindesk.com\/price\/bitcoin\" class=\"icon none\">according to CoinDesk<\/a>, before crashing as much as around 25%.\u00a0<\/p>\n<p>But even as the price kept sinking, more retail investors were buying than selling. There was only one day through that 10-day period when more people sold bitcoin than bought it \u2014 Jan. 11, when the price was lowest.<\/p>\n<p>This supports Mode\u2019s belief that most of its users are in it for the long term. The company says that around 80% of bitcoin on the app is held in the \u201cBitcoin Jar\u201d \u2014 a crypto savings vehicle the app offers to users, promising to generate a 5% yearly yield.<\/p>\n<p>But Kramer has a word of caution on the merits of relying on bitcoin.<\/p>\n<p>\u201cWhat we see is a great deal of volatility, a great deal of what looks like sentiment-driven price changes,\u201d she said. \u201cAnd so it would be foolhardy for anybody to invest 100% of their portfolio in cryptocurrencies and hope that this is going to provide a reliable nest egg in the future.\u201d<\/p><\/div>\n<\/div><\/div>\n<p><\/p>\n<div class=\"byline article__byline\">\n<p>      <span>By<\/span><\/p>\n<div class=\"author  hasMenu\" data-scrim='{\"type\":\"author\",\"header\":\"Jack Denton\",\"subhead\":\"The Wall Street Journal\",\"list\":[]}' itemscope itemprop=\"author\" itemtype=\"http:\/\/schema.org\/Person\">\n<h4 itemprop=\"name\"><span class=\"ez-toc-section\" id=\"Jack_Denton\"><\/span>Jack Denton<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/p><\/div>\n<\/div>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"http:\/\/www.marketwatch.com\/news\/story.asp?guid=%7B21005575-02D4-D4B5-4572-D250D786D05A%7D&#038;siteid=rss&#038;rss=1\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;#: \u2018Overconfidence\u2019: Why it\u2019s mostly men under 30 trading bitcoin&#8221; Data provided to MarketWatch give new insights into who is trading the crypto asset Already, the frenzy over WallStreetBets and GameStop is beginning to fade. In its wake, financial markets should be reminded that the most enduring retail investing mania over the last few months&#8230;<\/p>\n","protected":false},"author":1,"featured_media":171415,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[],"class_list":["post-171414","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/171414","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=171414"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/171414\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/171415"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=171414"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=171414"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=171414"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}