Kevin Helms
A student of Austrian economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open source systems, network effects and the intersection of economics and cryptography.
Younger People Are 7.5x More Likely To Hold Crypto In Their Portfolios – Featured Bitcoin News
Bank of America has found that younger wealthy Americans are 7.5 times more likely to hold crypto in their portfolios than investors aged 43 and older. “If the youngest cohort is not confident in shares, where do they see opportunities for investment growth? Alternatives, including cryptocurrencies, which are their No. 1 choice,” the bank wrote.
Young affluent Americans prefer cryptocurrency over stocks
Bank of America released its 2022 Private Bank Study of Wealthy Americans this week. The report highlights the results of an online survey, conducted from May to June, of 1,052 people over the age of 21 with household investable assets of more than $3 million. The bank noted that the respondents are a nationally representative sample of the American high net worth population and not necessarily customers of Bank of America.
“Conventional investment advice suggests that younger investors hold more stocks, not fewer, than older investors. Yet the 21 to 42 age group holds only a quarter of their portfolio in stocks, compared to 55% of investors aged 43 and older,” the report says, and notes:
If the youngest cohort is not confident in shares, where do they see opportunities for investment growth? Alternatives, including cryptocurrencies, which are their #1 choice.
“While 29% of younger people said that crypto offers a leading opportunity to create wealth, only 7% of the older group agreed. The younger group is generally
more interested in private equity or debt, as well as sustainable or environmental, social and governance (ESG)-related investments,” the report adds.
Bank of America emphasized that age is “the dominant factor when it comes to interest in cryptocurrencies,” elaborating:
While overall usage is low, younger people are 7.5 times more likely to have crypto in their portfolio and five times more likely to understand it fairly well.
Furthermore, the survey found that “Half of the younger group said they turn to social media for guidance about crypto, compared to 30% of the older group.”
What do you think of the Bank of America findings? Let us know in the comments section below.
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