
Is Investing in Crypto a Trend to be Wary Of?
As cryptocurrency investment grows among younger generations, UK banker Lisa Gordon raises the alarm bells. She suggests that over 50% of those under 45 own only crypto and no equities, a staggering statistic that has led Gordon to advocate for taxing crypto purchases. Her proposition is aimed at shifting investment focus back to stocks, which she argues are crucial for economic growth.
The UK’s Changing Investment Landscape
Currently, about 12% of UK adults, translating to around 7 million people, are involved in cryptocurrency. With the London Stock Exchange featuring only 18 new listings in 2023—the quietest year on record—the contrast between crypto and traditional assets couldn't be clearer. Gordon likens crypto to a “non-productive asset,” in stark contrast to equities that support companies in creating jobs and fostering innovation.
Tax Proposal: Shift Back to Equities?
Gordon proposes implementing a tax on cryptocurrency purchases while reducing the existing 0.5% stamp duty on shares. This strategy is intended to realign public investment towards equities, which she believes not only empowers the economy but also takes advantage of the social contract that equity investments represent.
Critique of the Current Economic Mindset
As more Britons veer towards saving instead of investing, Gordon warns that this tendency undermines long-term financial viability. Her insights serve as a wake-up call, challenging people to rethink strategies toward investing their money, particularly in a landscape where equities could benefit individual wealth-building and the economy at large.
Future of the UK’s Capital Markets
As Gordon holds a key position in the Capital Markets Industry Taskforce, her suggestions reflect a broader desire to revitalize UK capital markets. If successful, the proposed tax could encourage a new generation of investors to explore equities and reclaim potential growth avenues that seem to be fading fast.
Understanding these trends is crucial for current and aspiring investors, as they shed light on the evolving financial landscape. It’s essential to evaluate where and how your money is working for you, especially at a time when financial security is more important than ever.
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