Almost half of the millennial millionaires have admitted to allocating a significant portion of their wealth to cryptocurrency. By contrast, older generations still prefer not to invest in the crypto market.
Millennials See Crypto as The New Gold Rush
New evidence from a CNBC-published survey of over 700 respondents proves that about half of the young millionaires have allocated at least one-quarter of their wealth in cryptocurrencies. Also, about 35% of them are actively investing in cryptocurrency. According to George Walper, CEO of Spectrum group, the company that carried out the survey, “these young investors invested early into this market before it became widely popular. They were more connected to the idea intellectually despite the idea being new.”
Conversely, 84% of the older millionaire investors surveyed by the spectrum group have invested little or nothing into the crypto space because they don’t believe the crypto market can be classified as a verifiable asset class. Walper added that the wealth management industry might have to start offering crypto wealth management services sooner than later to avoid losing these millennial millionaires to investment sharks.
Only 10% of these older millionaire investors have their funds in digital currencies. Analysts opined that this survey proves the generational gap in wealth generation between the young and old millionaires.
Most of the respondents belonging to the older and boomer generation of investors were asking the surveyor about the legitimacy of digital currencies – a sign that most of them do not have a proper understanding of this market yet.”
Also, 50% of these young millionaires reveal that they own NFTs, while about 40% are already considering investing in NFTs. Surprisingly, most of them have less understanding of NFTs; they only describe it as the “next boom.”
As NFTs become more popular, the older generations will become farther behind in understanding the crypto market.
15% of U.S. Citizens Own Digital Currencies
When Gemini (a crypto exchange owned by the Winklevoss brothers) surveyed at the end of this year’s first quarter, it observed that 15% of Americans own virtual currencies. 66% of them categorized themselves as being “crypto curious,” while about 24% said they had no interest in it.
Unsurprisingly, bitcoin remains hugely popular among all of the respondents. 96% of them responded in the affirmative that they are knowledgeable about it. 88% of this 96% confirmed that they own actual bitcoins. Most of the respondents are also familiar with altcoins.
35% of them have investments in ether (eth), 23% in bitcoin cash (BCH), and 17% in Litecoin (LTC). In terms of the age range of these crypto investors, Gemini’s survey aligned with the CNBC survey as most of these millennial investors are between the ages of 24 and 45.
Thus, the average age of these investors is 35-year old male, and the average amount earned is about $110K. Pew research firm classifies anyone born in the early 80s and mid-90s as the millennial generation.