According to a study conducted by the BtcMarkets platform , the growth of female users accelerated rapidly during the year 2020-2021, with an increase of 172% compared to a growth of 79% for men.
The increase in the number of female investors is not anecdotal and also reflects the evolution of the financial landscape and in particular that of cryptocurrencies, which ultimately turns out to be less divisive, under the prism of gender.
However, women remain a minority, and gender inequalities are still evident. Indeed, in 2022, according to the Pew Research Center, twice as many men invested in cryptocurrencies as women. While 20% of women between 18 and 29 years old reported being interested in cryptocurrencies, the figure is nearly double that of men in the same age group.
The ever-increasing presence of women in the crypto industry breaks the stereotype that finance is an industry reserved for men. Even if this is still true for Wall Street, it would seem that it is different for decentralized finance.
And that's good. It would seem, indeed, that the relationship between women and crypto should be considered reciprocal and no longer unilateral. As much as women are emancipated with cryptocurrencies, the crypto space will become more efficient.
Are women better investors?
Numerous studies in behavioral finance have revealed that women are more risk-averse in investment decisions compared to men. There are several reasons for this behavior, the primary one being social construction. In most contemporary cultures, women are taught to be more cautious and limit risk-taking, while men, on the contrary, are encouraged to be more courageous and, therefore, indirectly, to take more risks.
Another, more pragmatic explanation is offered by Léa Lejeune , an economic journalist and founder of Plan Cash , an investment newsletter. She explains that women tend to be more financially prudent because they earn less than men. Inevitably, having fewer resources, they are less inclined to invest their money. QED.
These are not the only explanations for the difference in financial behavior observed between men and women, but we can sit down for a while with these readings to understand why women are less "degens" than their male counterparts.
The word " Degens " is short for "degenerate," a term that evokes the idea of "degeneration" and depravity. It's widely used in the crypto world to describe the highly speculative trading behavior of some novice investors (usually in their twenties or younger). Degen behavior essentially involves seeking profit as quickly as possible and buying tokens (especially " shitcoins ") in the same way they would buy and gamble in a casino. No financial analysis or investment knowledge is required to be a "degen."
This difference in behavior leads to differences in investment results and profits. A 2021 study by Fidelity Investments concluded that women have better returns on investments than their male counterparts (by approximately 40 points). The study shows that even by trading less frequently, they would still achieve significantly better results.
The study claims that female traders outperform men because they are more "patient, cautious, and disciplined." The success of female traders is attributed to better academic and financial education, particularly for women in Asia. For example, the trading platform Capital.com stated that 37% of its male users held a bachelor's or master's degree, compared to 50% of its female users.
The crypto industry dominated by men and women of people...
The degens have contributed to the rise of numerous practices that give the crypto ecosystem a bad name: protocols built on Ponzi schemes, worthless NFTs, scams of all kinds, price manipulation, shilling on shitcoins, venal marketing on social media, toxic debates, etc. More than just bad publicity, it's akin to self-destruction. One could at least call it self-sabotage, given that they are the first victims of their own behavior. Understand that they are the ones who have lost the most money (see the spectacular fall of the Luna token , the closure of numerous platforms including FTX, etc.).
However, it's important to remember that degens represent only a tiny fraction of the crypto world. They alone perpetuate the stereotype of a group of immature, unashamedly masculinist men who trade like they play World of Warcraft. This is yet another stereotype, and it's worth noting that there are, of course, female degens who adopt and embrace this type of financial behavior.
For BitGet founder Gracy Chen, the crypto industry is "a Wild West dominated by male speculators with a 'bro' culture reinforced by recent scandals and the market crash," he says in an article published on Forkast , which urges women to take on more key roles in investment and entrepreneurship. He adds that "women's engagement and leadership [can] help [create] a more positive work environment and improve products."
Entrepreneur Gracy Chen is not the only one who shares this idea and more and more people are seeking gender equality in the crypto industry in order to improve it, in several aspects.
What can women bring to the crypto industry?
Author and speaker Andie Kramer wrote an article for Forbes titled " The Crypto World Needs More Women ," in which she echoes Gracy Chen's sentiments. She elaborates on this point, explaining that "increasing gender equality in the crypto world would not only open up new career opportunities for women, but would also bring positive changes to crypto culture and increase its innovative nature."
It is based on research showing that women's participation in decision-making positions (at least 30%) drastically improves a company's product and business results. The independent research institute Gallup found that mixed teams outperformed single-gender teams. This is attributed to the fact that men and women bring "different perspectives, ideas, and market insights to projects." Diverse leadership can lead to more effective solutions to the problems companies face.
In a way, Gallup 's observations make sense, because ultimately, the diversity of genres breaks up homogeneous "groupthink", which then leads to less narrow-mindedness, and necessarily to more creativity.
However, Andie Kramer says that including more women in decision-making positions is a real change in mentality. There are biases like the affinity bias, which consists of naturally appreciating people who are similar to us that we must overcome. It will also involve reducing discriminatory practices regarding career opportunities.
The author concludes by emphasizing the need to also modify the corporate culture which must fight against the exclusionary and denigrating behaviors that certain men may have within the professional space.
Feminist Organizations Against “Crypto Bro” Culture
When we look at the crypto landscape right now, we can see a male (or even masculinist) dominance in the space. For example, there are more male influencers and web3 entrepreneurs. Men are more visible because they also occupy more “visible” positions.
That some of them include trolls or staunch masculinists is hardly surprising. We could mention a few small groups active on social media, but that wouldn't really be relevant here. On the other hand , we can highlight the work of certain women supporting the fight for gender equality in the crypto industry. There are more and more women in the crypto space, and that too is a fact.
Illustrator Yam Karkai created the World of Woman (WoW) collection to use the NFT space as a vehicle for advancing gender equality. Many female celebrities active in women's rights, such as Shonda Rhimes, Eva Longoria, and Huda Kattan, have contributed to promoting the collection.
We can also mention even more extreme cyber-feminist groups like the " Boys Club " founded by American activist Deana Burke . The name chosen is certainly ambiguous because in reality, the "Boys Club" is open to all non-binary people who wish to learn about the field of crypto-assets.
Thus, facing groups supporting masculinism, we will find feminist groups facing us. However, there is no question of cutting corners or decrying that the crypto space is of one camp or the other.
Bitcoin and cryptocurrencies are tools, just like the internet or mathematics. In themselves, they are neutral tools and anyone can use them for the cause of their choice, without affecting their impartiality.
Final Thought
We are well aware that as a crypto newspaper, we use the same chestnut on the occasion of International Women's Day, March 8. We too took advantage of this special day not to systematically point out the underrepresentation of women in the crypto sector but to show, on the contrary, that there is a notable evolution. In fact, we have decided to use the current data available to us and not to dwell on outdated figures and statistics concerning gender inequality in cryptocurrency or in Tech.
The figures, and we want to emphasize this point, show a "positive" evolution of the situation of women in the crypto universe. More of them are becoming investors or creating businesses in Web3.
We of course hope that there are always more women entering this world and that men are more welcoming. Women have as much to gain from cryptocurrencies as cryptocurrencies have to gain from women. Everyone wins.
In the words of Andie Kramer, “As exciting and dynamic as the world of crypto is, its full potential will only be realized if women begin to play a greater leadership role.”
Note : No financial advice is given in this article or any other article on ZoneBitcoin. This information is entirely your own judgment. Be responsible for your investments and only invest an amount you are prepared to lose.
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