One in three millennials will be invested in a cryptocurrency by the end of next year, possibly enticed by the meteoric rise in the value of bitcoin over recent months, according to new research.

The study by cryptocurrency exchange London Block Exchange reveals that five per cent of those aged below 35 already have cash invested in a cryptocurrecy, while 11 per cent are definitely planning to invest next year, shunning more traditional investments such as shares, bonds and property.

A further 17 per cent are seriously considering investing in a digital currency by the end of 2018, the study found.

LBX said that millenials are turning to cryptocurrencies because they feel left behind by more traditional investments – particularly property and pensions.

“This study underlines the gulf between the younger generation’s view of money and that of their parents and grandparents, who had assets perform so well for them in pensions or property,” said LBX Founder and chief executive officer Benjamin Dives.

“Millennials clearly feel left behind by the old system and are looking at cryptocurrencies as a new dawn,” he added.

If this happens it would make digital currencies – including bitcoin, ethereum and litecoin – a more popular asset among millennials than shares, bonds, precious metals or a second property.

The LBX research predicts that 12 per cent of millennials will be invested in shares, 20 per cent in bonds, 19 per cent in precious metals and 18 per cent in property by the end of next year.

A total 24 per cent of those aged under 35 said that they regret not buying into a crypotocurrency earlier after seeing bitcoin’s value soar over the past year.

The poll of 2,000 Britons, across a broad demographic, also found that the North East of England – with its growing tech scene – is second only to London when measured by the number of people across all age ranges who are interested in cryptocurrencies. People living in the South East of England, Wales and East Anglia are among the least interested.

And it also shows that the soaring value of bitcoin has not caught the interest of older generations. Some 57 per cent of those aged over 55 say that they definitely won’t be buying digital currencies.

Garrick Hileman, cryptocurrency expert and research fellow at the University of Cambridge, said that while banks and other financial institutions have been struggling to find ways to connect with millenials, cryptocurrencies in a very short period of time have overcome the initial stigma surrounding their use with young people.

“Millennials began their income generating years during the fallout from the 2008 financial crisis, and many don't completely trust traditional financial services firms or the system in which they operate,” he said.

While Bitcoin has appreciated significantly in price this year - soaring past $17,000 (£12,718) on 8 December - it has also exhibited substantial volatility.

Business news: In pictures Show all 13 1 /13 Business news: In pictures Business news: In pictures Flybe collapses Airline Flybe has collapsed. All future flights on the Exeter-based airline have been cancelled – leaving more than 2,300 staff facing an uncertain future, and wrecking the travel plans of hundreds of thousands of passengers. The chief executive, Mark Anderson, said: “Europe’s largest independent regional airline has been unable to overcome significant funding challenges to its business. AFP via Getty Business news: In pictures Future product placement will be 'tailored to individual viewers' Marketing executives say that product placement in films and televison shows on streaming services such as Netflix may be tailored to individuals in future. For instance, if data shows that a viewer is a fan of pepsi, a billboard in the background of a shot would host an advert for pepsi, while for a viewer known to have different tastes it could be for Coca-Cola Paramount Business news: In pictures Corbyn wishes Amazon a happy birthday In a card sent to Amazon CEO Jeff Bezos on the company's 25th birthday, Labour leader Jeremy Corbyn writes: "You owe the British people millions in taxes that pay for the public services that we all rely on. Please pay your fair share" Business news: In pictures No deal, no tariffs The government has announced that it would slash almost all tariffs in the event of a no-deal Brexit. Notable exceptions include cars and meat, which will see tariffs in place to protect British farmers Getty Business news: In pictures Fingerprint payment NatWest is trialling a new bank card that will allow people to touch their hand to the card when paying rather than typing in a PIN number. The card will work by recognising the user's fingerprint NatWest/PA Wire Business news: In pictures Mahabis bust High-end slipper retailer Mahabis has gone into administration. 2 Jan 2019 Mahabis Business news: In pictures Costa Cola Coca-Cola has paid £3.9bn for Costa Coffee. A cafe chain is a new venture for the global soft drinks giant PA Business news: In pictures RIP Payday Loans A funeral procession for payday loans was held in London on September 2. The future of pay day lenders is in doubt after Wonga, Britain's biggest, went into administration on August 30 PA Business news: In pictures Musk irks investors and directors Elon Musk has concluded that Tesla will remain public. Investors and company directors were angry at Musk for tweeting unexpectedly that he was considering taking Tesla private and share prices had taken a tumble in the following weeks Getty Business news: In pictures Jaguar warning Iconic British car maker Jaguar Land Rover warned on July 5, 2018 that a "bad" Brexit deal could jeopardise planned investment of more than $100 billion, upping corporate pressure as the government heads into crucial talks AFP/Getty Business news: In pictures Spotif-IPO Spotify traded publically for the first time on the New York Stock Exchange on Tuesday. However, the company isn't issuing shares, but rather, shares held by Spotify's private investors will be sold AFP/Getty Business news: In pictures French blue passports The deadline to award a contract to make blue British passports after Brexit has been extended by two weeks following a request by bidder De La Rue. The move comes after anger at the announcement British passports would be produced by Franco-Dutch firm Gemalto when De La Rue’s contract ends in July. The British firm said Gemalto was chosen only because it undercut the competition, but the UK company also admitted that it was not the cheapest choice in the tendering process. Business news: In pictures Beast from the east economic impact The Beast from the East wiped £4m off of Flybe’s revenues due to flight cancellations, airport closures and delays, according to the budget airline’s estimates. Flybe said it cancelled 994 flights in the three months to 31 March, compared to 372 in the same period last year.

Many economists believe bitcoin remains a major gamble and there are concerns that the crypotocurrecy’s value could crash.

Laith Khalaf, senior analyst at Hargreaves Lansdown, said investors should make sure they understand bitcoin and what drives the price up or down before committing any money.

“They should also be willing to sustain the large losses which could stem from the volatility of the cryptocurrency, and if gaining exposure though a bitcoin product they should make sure they understand the operation and risks of the product itself, as well as the intricacies of bitcoin,” he said.