Millennials and Gen Z have found a sense of solace in cryptocurrency. As the generations that has experienced the extremes of inflation, cryptocurrency has provided them with the opportunity to invest in upcoming technologies and secure profits.
In a survey conducted by Bankrate.com in 2021, it was estimated that more than 34% of American millennials were somewhat comfortable with investing in cryptocurrencies, whereas 15% were very comfortable. This is in contrast to only 9% of all Americans that were very comfortable with investing in cryptocurrencies, and the 26% that was somewhat comfortable.
It is important to note that these statistics were collected during a time when cryptocurrency and NFT markets were booming. 2021 was the year when the first Bitcoin-linked ETF began trading, and when NFT was declared the word of the year by Collins dictionary. 2021 was also the year BTC reached its ATH (all-time high) price of $64,400.
Overall it was a good year for cryptocurrency, but as the 2022 bear market took hold, the statistics began to reflect a very different story.
Millennials Are Not Comfortable Investing in Cryptocurrencies
According to CNBC, the overall interest and comfort level of investors in cryptocurrency fell from 35% to 21% between 2021 and 2022 respectively. But what is more interesting is the decrease in cryptocurrency amongst millennials in 2022, as the generation raised on emerging technologies. Millennials were there to witness the rise of the gaming industry, the mobile phone industry, the internet, and so much more.
It is predicted through a report published by Gemini that 74% of cryptocurrency holders are between 25-44 years old, fitting right into the millennial age gap. So where has this confidence gone in the last year?
As the markets continue to prove volatile, more and more millennials are straying away from cryptocurrency investments.
To follow up on the Bankrate.com survey done in 2021, they continued that same line of questioning in 2022. When asked “How comfortable are you investing in cryptocurrency?”, many Millenials were quick to revoke their “very comfortable” or “somewhat comfortable” status.
Using these “very comfortable” or “somewhat comfortable” brackets, where saw a tremendous drop between millennials, from roughly 49% in 2021 to 29% in 2022.
What Are Millennials Investing In?
As we stated, 74% of cryptocurrency holders are between 25-44 years old, which highlights that millennials are buying cryptocurrency, so what do these recent statistics indicate?
With the overall cryptocurrency bear market, we do not feel as though these statistics accurately detail millennials’ interest in cryptocurrency. Most have a comfortable understanding and interest in cryptocurrency, just not right now. The unpredictability of the crypto markets makes it harder for millennials to invest their hard-earned money into assets that may not increase for a while, with inflation on the rise, users can’t afford to take a loss right now.
The oversaturation of the markets can also make it more difficult for investors to have confidence in their research and the possibility of a specific cryptocurrency doing well. With the increase in scammers and hacks in the space, users may not feel comfortable with the increased risks of losing their funds. As cryptocurrency regulations continue to go unconfirmed, the risk of tax brackets poses another threat. But as Philip Crone said:
It’s easy to make it through the good times; it’s how we handle the bad times that separates us from the crowd and moves us close to our goals.Philip Crone
Is Cryptocurrency Adoption Dying Down?
While the price of cryptocurrency may not be doing as well as it was, crypto continues to build on all of the successes it has already achieved, while still making new strides every day.
Cryptocurrency has flourished within and accelerated the casino industry, the NFT space, gaming efforts, sports, and more. We have seen big companies like Coca-Cola, Barbie, Universal Studios, Disney, and more embrace the possibilities of blockchain technology and cryptocurrency. This is not the end of cryptocurrency, but merely a bump in the road. There is always rain before a rainbow, and this feels true to the current climate of cryptocurrencies.
We do not believe millennials are no longer interested in cryptocurrencies, they are just reacting to the current markets. Cryptocurrency is fairly new, but it has already amassed worldwide confidence, and that doesn’t just go away overnight. The benefits of cryptocurrency are clear, and even without the support they once had, cryptocurrency will resume its revolutionary stand and continue to change the financial sector.
While these statistics may be true right now, when the bull markets return, these numbers will surely retrace. For now, do what feels best for you, and don’t be scared to buy the dip.