Overpriced real estate? Thousands of young people are throwing themselves into crypto to get by

The conclusions of recent analyzes leave one wondering: what seemed anecdotal a few years ago is confirmed on a large scale. Behaviors described as “desperate” are now charting a new path in the financial landscape. Once marginal, crypto is now establishing itself as a real escape for generations excluded from the real estate dream. In the shadow of a crisis that does not speak its name, tokens are replacing bricks. This shift, now documented, is redrawing the lines of an economy under pressure.

When classic finance becomes a labyrinth, cryptos take over

Between skyrocketing rents and frozen salaries, the journey towards property is akin to crossing the desert. For thousands of young people, traditional savings no longer lead anywhere. According to a study, researchers identify a clear turning point: as soon as the dream of buying dies, the desire to save also dies. Instead, some are betting on cryptos, seen as a final lever.

Not out of blind faith in blockchain. But because you have to believe in something when the benchmarks collapse.

Crypto becomes a disruptive strategy. It offers the possibility, however slim, of taking the social elevator in one transaction. This is what this formula from the researchers sums up:

Crypto is becoming a substitute for the American dream.

This shift is not just American. In South Korea and Japan, the scenario is repeating itself. Young people, excluded from the real estate market, are rushing into the crypto market. A survival behavior more than a technophile craze. And this shift is redrawing the boundaries of personal finance.

Real estate bubble, social bubble: institutional finance in the viewfinder

The crypto boom can also be explained by the shortcomings of institutional finance. Since 2008, monetary policies have continued to fuel bubbles: artificially low rates, quantitative easing, massive injections of liquidity, etc. Result: between 2020 and 2022, real estate prices jumped by 40 to 70% in several American cities, as pointed out by Wolf Street.

And while some accumulated assets, others increased their debt.

On X, journalist Ben Norton accused :

The American housing bubble burst in 2007-2008, causing a huge financial crisis. And what did the United States do next? They inflated a new real estate bubble, even bigger today. Because the American economy is a financialized house of cards, built on asset bubbles.

Several voices denounce a perverse dynamic: the rich prosper thanks to cycles of crashes. The others take the losses.

And when the future closes in, professional commitment collapses. THE report establishes a direct link between the renunciation of property and the phenomenon of “quiet quitting”. The young people remain at work, but without flame. The social contract is broken.

Last ticket to hope: cryptos, risks and temptations

It is no coincidence that those with between $50,000 and $300,000 in assets are the most active in the crypto market. Too solvent to give up everything, but too poor to access the stone. Stuck in this “no man’s land”, they look for escape routes.

And they are not alone: ​​anonymous voices resonate online. On a user sums up :

Let this bubble burst. So much suffering comes from allowing cheaters to be parasitic on each other. May the American house of cards, which they themselves built, collapse once and for all.

This silent rage fuels the attraction for cryptos. Not just Bitcoin. Ethereum, Solana, XRP, Dogecoin, Toncoin: all become bets on a better life. Combat finance, for those who have been forgotten by traditional finance.

5 figures and facts to keep in mind:

• +64%: increase in house prices in Austin (TX) between 2020 and 2022;
• +210%: price increase in Sarasota (FL) in 10 years;
• 24%: price drop observed in Austin since peak;
• $2.25 trillion: assets held by the Fed at the end of 2008 (compared to $950 billion in September);
• $50,000 to $300,000: Asset bracket with the highest crypto participation.

Crisis obliges, more and more young people are looking to reshuffle the cards. They no longer dream of real estate, they dream of returns. Especially when it comes to preparing for retirement differently. And in this new game, crypto is no longer a wild card: it becomes a long-term strategy.