Tech News, Magazine & Review WordPress Theme 2017
  • FEATURES
    • News
    • Bitcoin
    • Ethereum
    • Ripple and XRP
    • Altcoins
    • Trading
    • NFTs
    • Blockchain
    • Futuremash
    • Regulators
    • Scams
    • Crypto 101
  • HODLX
    • Latest Stories
    • FAQ
    • Submit Your Guest Blog
  • INDUSTRY ANNOUNCEMENTS
    • Latest
    • Press Releases
    • ChainWire
    • Sponsored Posts
    • Submit Your Content
  • CRYPTO MARKETS
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Binance Coin (BNB)
  • BEGINNERS
    • What Is Bitcoin?
    • What Is Blockchain?
    • What Does Hodl Mean?
    • How to Pay Your Bills with Bitcoin
    • Best Bitcoin FAQs
    • Example of Bitcoin’s Purpose
    • Cryptocurrency Has Multiple Meanings
    • Authenticator Alert – Securing Your Crypto
  • SUBMIT
    • Guest Blog
    • Press release
    • Sponsored post
  • Email Alerts
  • DAILY HODL MIX
No Result
View All Result
  • FEATURES
    • News
    • Bitcoin
    • Ethereum
    • Ripple and XRP
    • Altcoins
    • Trading
    • NFTs
    • Blockchain
    • Futuremash
    • Regulators
    • Scams
    • Crypto 101
  • HODLX
    • Latest Stories
    • FAQ
    • Submit Your Guest Blog
  • INDUSTRY ANNOUNCEMENTS
    • Latest
    • Press Releases
    • ChainWire
    • Sponsored Posts
    • Submit Your Content
  • CRYPTO MARKETS
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Binance Coin (BNB)
  • BEGINNERS
    • What Is Bitcoin?
    • What Is Blockchain?
    • What Does Hodl Mean?
    • How to Pay Your Bills with Bitcoin
    • Best Bitcoin FAQs
    • Example of Bitcoin’s Purpose
    • Cryptocurrency Has Multiple Meanings
    • Authenticator Alert – Securing Your Crypto
  • SUBMIT
    • Guest Blog
    • Press release
    • Sponsored post
  • Email Alerts
  • DAILY HODL MIX
No Result
View All Result
The Daily Hodl
No Result
View All Result

Why Are Millennials Running After Crypto Investments?

by Ian Kane
April 30, 2022
in HodlX
HodlX Guest Post  Submit Your Post
 

According to a recent CNBC Survey conducted by Spectrum Group, most millennial millionaires who have already had a massive chunk of their wealth in cryptocurrencies are thinking of investing more despite clashes in crypto prices. It is also to be noted that millionaires are more bullish about the economy, interest rates and tax rates.

Around 41% say that the economy will get stronger in 2022, while 35% say it will weaken. The survey highlights that 83% of millennial millionaires own cryptocurrencies. Around 53% of those millionaires have more than half of their wealth in cryptocurrencies, and around one-third of millionaires have 75% of their wealth in cryptocurrencies like Bitcoin and Ethereum.

Interestingly, on the other hand, cryptocurrency holdings are much less popular among older generations. According to the survey, only four percent of baby boomers hold cryptocurrencies, and 75% of Gen X do not have any crypto holdings. The divide between the attitudes of younger and older generations about cryptocurrencies is quite sharp.

Another Bankrate survey suggests that at least half of millennials are comfortable investing in cryptocurrency as compared to 37% of Generation X and 22% of baby boomers. Of those, 12% of millennials think that Bitcoin and other cryptocurrencies are the best places to invest money in the long term.

There are primarily two categories of millennial millionaires – first, those who made their money mainly due to crypto growth, and second, those who used their existing wealth (mainly generational or from startups) to invest in cryptocurrencies. For around 45% of the millennials, inherited generational wealth was a factor in their total wealth. And for millionaires worth $5 million and over, generational wealth was a prominent factor (75%).

But other millionaires who invested in crypto years ago became self-made millionaires due to vast growth in their crypto investments and assets. Most of these millionaires seem very comfortable with the volatility of crypto. Millennial millionaires are bullish and more aggressively investing in risky assets than their older peers.

A vast generational gap

The results suggest a vast generational divide between younger and older generations in regard to their interest in cryptocurrencies. Even though older generations of millionaires are still quite hesitant to invest in cryptocurrencies, millennials are capitalizing on the opportunities provided by this unique vehicle of investment – so much so that it has become one of the primary sources of their wealth creation.

Despite the recent volatility in the prices of cryptocurrencies, millennials have no plans to reduce their crypto holdings. The CNBC survey suggests that around half (48%) of millennial millionaires plan to increase their crypto holdings in the next 12 months, and around 39% plan to maintain their current holdings. On the other hand, only six percent of millennial millionaires plan to reduce their cryptocurrency holdings in the next 12 months.

Another point of contrast between the two generations was their perception of inflation. While inflation was the top concern for millionaires in the survey, millennials did not seem to be worried about it at all. This is mainly because the millennial generation has not experienced inflation, while baby boomers have. They cannot relate to those concerns because they have no memories of investing or living in a low-interest environment.

Millennials believe that Covid-19, higher taxes and the US stock markets are the most significant risks for them. On the other hand, older investors who have lived in the 70s and 80s believe inflation is the most significant risk. They think that the Fed is tightening cycles this year, and there will be a lower return from the market.

When the investment portfolio of a baby boomer and a millennial millionaire is compared, notable differences can be spotted. Baby boomers have already saved, invested and diversified their portfolios. They are not planning to change their investment strategy drastically – instead, they plan to stick with their original plans.

On the other hand, millennials have started structuring their financial plans after they have left company stock or worked in a startup that is going public. Millennials, in general, seem more comfortable with taking risks, which was evident last year too, as they heavily invested in meme stocks.

Baby boomers who did not understand the meme stock phenomenon stuck with more traditional stocks like Apple and Microsoft and garnered steady returns. The risk appetite of millennials is mainly dependent on how they have earned their money. If the source of their wealth creation is cryptocurrency investment and growth, they are more likely to be bullish about it.

Should I invest in cryptocurrencies?

The interest in cryptocurrencies has been growing exponentially. People, especially the younger generations, stuck at home during the global pandemic are surfing online to explore non-conventional vehicles of investments. Even though quite speculative and volatile, cryptocurrencies have grabbed the attention of millennials.

Given the rising interest, the Commonwealth Bank recently announced its move to add a cryptocurrency trading function to its banking app. This was primarily motivated by the demand of its younger investors. It will allow customers to buy and sell 10 different cryptocurrencies on its banking app. This will help cryptocurrencies enter the mainstream market, eventually leading to greater adoption and acceptance of crypto assets.

Even though young Americans are relatively comfortable investing in cryptocurrencies, it is still important to remember that they are a volatile asset class. Experts suggest that newbies should only invest as much as they can afford to lose. To limit risk, you must not invest all your savings in crypto holdings – instead, you should diversify your investment portfolio.

Also, it is not recommended to invest all your money in only one kind of crypto asset. Besides that, you should remember that cryptos are taxable assets, and you are obligated to pay taxes when you make any capital gains. Failure to do so can lead to heavy fines and penalties.


Ian Kane is the co-founder at Unbanked, a global fintech platform built on blockchain. Kane has worked in technology and digital media for over 10 years with a heavy focus on business development, sales and strategy.

 
Check Latest Headlines on HodlX


Follow Us on Twitter Facebook Telegram

Check out the Latest Industry Announcements
 

Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Featured Image: Shutterstock/yuhu/Vladimir Sazonov/Andy Chipus

Submit a Press Release

Industry Announcements

  • Anonymous Turns to CultDAO for Support Against Unjust Government Actions
    May 12, 2022
  • Bnext Receives Additional $4.5 Million Investment, Led by Borderless Capital To Drive DeFi on Algorand
    May 12, 2022
  • Lina Valentina’s ‘No More’ NFT Collection Denounces Domestic Violence
    May 11, 2022
  • Cake DeFi Enters Into Esports With Competitive Gaming Platform FACEIT
    May 10, 2022
  • Introducing YUSE, the Ultimate Multi-Utility Token
    May 10, 2022
  • HUMAN Protocol Foundation Awards Grant to VeritaTrust To Build On-Chain Rewards for Reviews
    May 10, 2022
  • NUS Computing Joins Forces With TZ APAC To Develop Singapore’s Next Generation of Tech Innovators
    May 10, 2022
Submit a Guest Post
ADVERTISEMENT
Bitcoin
$29,689.00
$29,689.00
1.08%
Ethereum
$2,017.29
$2,017.29
2.68%
BNB
$296.59
$296.59
0.75%
Cardano
$0.561913
$0.561913
2.19%
XRP
$0.417963
$0.417963
2.26%
Dogecoin
$0.087506
$0.087506
1.81%

Spotlight

  • Binance’s Reported Russian Activity Highlights Potential Privacy Concerns in Crypto Markets
    May 10, 2022
  • Investing Legend Mark Mobius Issues Warning to Crypto Investors, Details Dire Price Targets for Bitcoin (BTC)
    May 13, 2022
  • Analyst Who Predicted May 2021 Bitcoin Collapse Maps Potential BTC Capitulation Scenario
    May 9, 2022
  • SEC Chair Gary Gensler Says Crypto Exchanges Are Betting Against Their Own Clients: Report
    May 11, 2022

Cryptocurrency news and analysis, covering Bitcoin, Ethereum, Ripple, XRP, altcoins and blockchain technology

Categories

Bitcoin • Ethereum • Trading •
Ripple and XRP • Altcoins •
Blockchain • Regulators •
Scams • Crypto101 • HodlX •
Futuremash •
Industry Announcements

ABOUT US | EDITORIAL POLICY | PRIVACY POLICY
TERMS AND CONDITIONS | CONTACT

JOIN US ON TELEGRAM

JOIN US ON TWITTER

JOIN US ON FACEBOOK

COPYRIGHT © 2017-2022 THE DAILY HODL

No Result
View All Result
  • FEATURES
    • News
    • Bitcoin
    • Ethereum
    • Ripple and XRP
    • Altcoins
    • Trading
    • NFTs
    • Blockchain
    • Futuremash
    • Regulators
    • Scams
    • Crypto 101
  • HODLX
    • Latest Stories
    • FAQ
    • Submit Your Guest Blog
  • INDUSTRY ANNOUNCEMENTS
    • Latest
    • Press Releases
    • ChainWire
    • Sponsored Posts
    • Submit Your Content
  • CRYPTO MARKETS
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Binance Coin (BNB)
  • BEGINNERS
    • What Is Bitcoin?
    • What Is Blockchain?
    • What Does Hodl Mean?
    • How to Pay Your Bills with Bitcoin
    • Best Bitcoin FAQs
    • Example of Bitcoin’s Purpose
    • Cryptocurrency Has Multiple Meanings
    • Authenticator Alert – Securing Your Crypto
  • SUBMIT
    • Guest Blog
    • Press release
    • Sponsored post
  • Email Alerts
  • DAILY HODL MIX

© 2022 The Daily Hodl