Crypto’s popularity among US millennials on the decline (survey)

An analysis conducted by the financial company Bankrate showed that American millennials are not as enthusiastic about cryptocurrencies as they were last year.

Around 30% said they feel comfortable investing in digital assets, compared to 50% in 2021.

The latest change in trends

Younger generations, including millennials and Generation Z, are among the most active demographics in the cryptocurrency space. However, a recent survey showed that the former had lost some of their passion for the sector.

James Royal – chief reporter at Bankrate (the company that conducted the study) – recalled that around 50% of US millennials felt comfortable investing in digital assets last year, while this number has now shrunk to 30%.

In his view, most of the interest in 2021 was generated due to the high prices of Bitcoin, Ether and other assets. Many young people thought they could “make a lot of money fast,” which is why they entered the ecosystem, Royals explained.

The Bankrate employee went further and claimed that investing in cryptocurrency relies on “the greater fool theory”, where you can make a profit only by selling your holdings to someone willing to pay a higher price than the original one. As a result, “legendary investors like Warren Buffett” are critics of the asset class, Royals argued.

He advised Americans to focus on the stock market, especially the S&P 500 index, if they want to preserve their wealth in times of financial crisis:

“Buying an S&P 500 index fund regularly and then holding on through thick and thin has built the fortunes of many American millionaires.”

And while the trends in the US seem to have changed in recent months, residents of other countries (where the economy is in a state of knockdown) have shown significant interest in cryptocurrencies.

For example, the worrying inflation rate and political unrest in Argentina and Turkey have pushed some people to invest in digital assets, especially stablecoins.

Millennials prefer crypto over mutual funds

Another analysis conducted this summer by investment firm Alto estimated that about 40% of Americans between the ages of 26 and 41 have some exposure to cryptocurrencies. The same number of people admitted to investing in individual stocks, while less than 35% own mutual funds.

Interestingly, in November 2021, when bitcoin was trading near its peak price of $69,000, 36% of millennials said they wanted to receive half of their wages in crypto assets instead of fiat.

At the time, Nigel Green – CEO and founder of the deVere Group – explained the youth’s enthusiasm with the fact that they are most fascinated by technological innovations and are the ones who understand the “massive potential of digital currencies”.