Risks of 'finfluencers' and AI for Generation Z
According to a report by the Australian Securities and Investments Commission (ASIC), 23% of Generation Z in the country own cryptocurrencies. At the same time, two-thirds of young people aged 18 to 24 rely on information from social media when making decisions about their finances.
ASIC experts note that this trend leads to riskier investments, including in cryptocurrencies. The regulator warns of the danger of 'finfluencers' - bloggers who give financial advice on social media without the appropriate qualifications. In addition, ASIC is also concerned about the growing influence of artificial intelligence (AI) technology on the investment decisions of the younger generation.
The situation in Australia reflects global trends. According to a study by Gemini, in 2021 the share of cryptocurrency investors among Generation Z reached 20% globally. At the same time, many young investors rely on the advice of bloggers and recommendations on social media, not always understanding the associated risks.
Experts note that regulators need to pay more attention to protecting young investors from misinformation and unscrupulous 'finfluencers'. It is also important to increase financial literacy among Generation Z, so that they can independently assess risks and make balanced investment decisions.