- Millennials are embracing cryptocurrency in the US.
- As inflation lowers the dollar value, millennials see crypto as the best investment alternative.
- Some people are skeptical of cryptocurrencies.
Digital assets have become a significant part of millennials' investment portfolios in recent years. According to data from CryptoMonday.de, 54% of all crypto-enabled accounts in the US are in the hands of millennials.
Speaking on the data, CryptoMonday CEO said,
What we are seeing is that the young investor demographic is flocking to cryptocurrency as an investment opportunity. This is likely because they are more comfortable with digital assets and the technology behind them. Given the current economic conditions, with inflation eating into the value of traditional investments such as bonds and equities, it's no surprise that millennials are turning to cryptocurrency as an alternative investment.CryptoMonday CEO Jonathan Merry
Other generations are also getting into the crypto space. The next group of American crypto investors is Gen X and Gen Z, each with 31% of accounts. Baby boomers held just 4% of crypto-enabled accounts.
The Significance of Cryptocurrency to Millennials
The bank's inflation and low-interest rates have made many millennials turn to cryptocurrency for long-term investment. The dollar's purchasing power has also declined, furthering the incentive to invest in digital assets.
For many Millennials, crypto trading has become a means of financial independence. It offers millennials an alternative means to riches. The prices of digital assets are still volatile, but they have shown a willingness to rebound after any sell-off. The volatility is also an opportunity for traders to make a profit.
Confidence and Enthusiasm Are High, but So Is Confusion
However, the major concern around digital assets is exactly their high price volatility. Their prices can change rapidly, and this makes them unsuitable for use in day-to-day transactions. For millennials, though, the risk is worth it as they believe in the long-term potential of cryptocurrencies.
Some people are also worried about the regulatory environment around digital assets. The US SEC has been hesitant to approve crypto ETFs, dampening some of the industry's enthusiasm.
Baby boomers didn't grow up with computers. As a result, cryptocurrency doesn't bother them much. Stocks and investment funds have been working for them very well. Thus, most of them find it comfortable to maintain this plan rather than diversify to crypto.