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Cryptocurrency is losing popularity as an investment vehicle in the US, according to Bankrate Survey – Bitcoin News
The popularity of cryptocurrency as an investment vehicle is declining in the United States, according to a survey conducted by Bankrate. The survey found that trust in crypto has decreased across several groups, with millennials losing 20% of their trust in the asset – more trust lost than in the other generational groups surveyed.
Investors lose confidence in crypto according to bank rate
While crypto is still considered a new investment vehicle in the current market, some of its believers have started to lose faith. A survey conducted by Bankrate shows that the number of Americans who are comfortable investing in crypto has fallen across generational groups.
Millennials, who have traditionally been open and connected to new technologies like crypto, have been one of the groups that have lost the most trust in crypto. The percentage of millennials who were “very comfortable” or “comfortable” investing in crypto went from 49% in 2021 to 29% this year.
However, other groups also lost confidence in crypto, with the same metrics falling from 37% to 21% among Gen Xers, and from 21% to 11% among Baby Boomers. Overall, only 21% had some confidence in crypto as an investment this year, compared to 35% in 2021.
According to the report, this is the result of the recent fall in the cryptocurrency market, produced by the US central bank’s intervention, raising interest rates to fight inflation. Greg McBride, CFA and Bankrates financial analyst, stated:
It is much easier to be enthusiastic and believe in something when you see its value continuously increasing. The real test of faith comes when the chips are down, and many investors have realized that they now feel differently about investing in cryptocurrency.
Why younger generations are more inclined to believe in crypto
The report also tries to uncover why younger groups tend to be more interested in investing in cryptocurrency. These younger groups, including Gen Zers and millennials, are said to be more likely to get financial advice from less-than-ideal sources like social media and friends and family, rather than hearing from sources like actual investors.
Even with this loss of confidence in crypto, those who still believe in it also believe that crypto can make them billionaires in the future. A survey done by Harris Poll shows that the younger crowds, including millennials and Gen Zers, are the most confident groups in their ability to become billionaires through crypto.
What do you think about crypto’s loss of popularity in the US? Tell us in the comments section below.
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