University students in the UK are opting for investments in cryptocurrencies to make up for their financial shortfalls. The number of student cryptocurrency investors has tripled from 2% to 6% from the last year, as indicated by a recent survey from the financial advice website Save the Student.
Nearly three-quarters of all students who participated in the survey said they had considered giving up on their education due to financial woes.
The survey showed that most students were short of £340 each month as looked at various ways of raising funds. Several participants resorted to selling possessions, overdrawing bank accounts, and taking part in drug trials to manage their expenses.
Crypto investments were used by a limited number of students, however, that figure is on the rise. One such student, Daniel Tones, reported that he had lost several hundred pounds in digital assets.
Tones emphasized that after discussing things with economics students, he has a better understanding of taking risks. He also warned other potential investors to do their homework before getting involved with the market.
The growing appetite for cryptocurrencies is understandable in a financial climate where most students are struggling to make the ends meet. However, authorities have raised concerns about the trend, noting that many are getting “swept up in the hype” without the needed knowledge.
In June, the Financial Conduct Authority (FCA) revealed that 14% of surveyed crypto holders had taken loans to acquire digital assets due to reports of huge gains -- a statistic described by the regulator as “terrifying.”