Crypto Loses Momentum, Yet Younger Generations Continue To Flock — What’s Keeping Them Invested?

Ccryptocurrencies in general are getting hit. According to CoinGecko, Bitcoin, which recently saw 40% of its investments underwater, fell 55% from its all-time high of $ 69,044 in November 2021. However, a new CivicScience survey found that younger investors are still attracted by digital assets.

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The survey showed that while most American adults do not plan to invest in cryptocurrency, it is growing in popularity, especially among new investors. He noted that 18% of Americans invest in cryptocurrencies, while 12% plan to invest, while a staggering 58% do not invest or plan to do so.


“I don’t think many older adults trust or understand cryptocurrency,” Courtney Godshall, vice president of CivicScience’s Media Insights, told GOBankingRates. “Today, it is still the older generations who own most of the country’s assets and are more likely to invest them in financial products that they understand. Older adults nearing retirement are also more risk-averse and less likely to make changes to their financial portfolios. As younger generations begin to accumulate more wealth and control more assets, I think that will change. “

According to the survey, seventy-one percent of cryptocurrency investors are under 45 years old. In the first quarter of 2022, among those invested, 21% were in the 18-24 age group; 30% were in the 25-34 age group and 20% in the 35-44 age group, according to the data.

Godshall said he attributes the age of investors to the digital world in which they grew up. “Their technical knowledge and social media gives them more confidence in cryptocurrency. Since technology has always been a part of their world, digital-only investments, interactions, and transactions are normal for them. Many are also willing to take more risks with them. their investments, as they have more time to recover the losses ”.

CivicScience also found that among those who have invested in cryptocurrencies, the gender gap is still noticeable, as 57% are men. In addition, the study noted that 45% are not white and 52% said that social media influences their purchases.

Bitcoin Foundation President Brock Pierce told GOBankingRates that it is not surprising that those under the age of 45 are more attracted to cryptocurrency, because they are also more generally attracted to the adoption of new technologies. “Older investors are more likely to view gold as a safe haven asset as inflation rises, and it will take longer for them to emerge as cryptocurrency tools and education spread further,” he said.

The sentiment has been repeated by many experts who emphasize the fact that young people have grown up in a digital native environment and are fluent when it comes to all things internet.

“It makes sense that when it comes to transferring value through digital information systems that may seem complex to adults, millennials and Generation Z are driving global adoption of cryptocurrencies,” Michael Rosmer, CEO of DEFIYIELD, told GOBankingRates. He added that the burst of new investments still reaching this asset class is a strong indication that the crypto is growing – and will continue to grow – although we are entering what appears to be a period of sharp price falls and a slowdown in growth. world.

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In addition, the sophistication of younger generations’ investment in cryptocurrencies has grown exponentially in recent years, and it’s no longer just about buying Bitcoin or Ethereum.

“They are using the growing decentralized finance or DeFi ecosystem to their advantage, especially when it comes to cryptocurrencies betting on various forms of returns,” Garry Krugljakow, founder and CEO of GOGO Protocol, told GOBankingRates. “But it is important to keep in mind that the risk profile of new investors is higher and they are willing to try new technologies that offer potentially greater rewards. And this is an important catalyst for why cryptography will become more secure and useful in the long run. “It’s an exciting time, and this trend makes it even more exciting!”

In terms of perceptions, Americans believe that although it is not yet widespread, cryptography is growing in popularity, and many think it will be remarkable in the coming years, a trend that is accelerating, according to data from CivicScience.


30% of Americans think that cryptocurrencies will prevail, a jump from 17% in June 2021. In addition, 12% believe that they will become common compared to 5% in 2021. Finally, 59% believe that they are niches. . compared to 79% in June 2021.

Russell Starr, CEO of DeFi Technologies, told GOBankingRates that younger investors, especially millennials and Generation Z, have only invested in a post-2008 world and are very wary of traditional financial institutions, one of the main reasons they invest in crypto. . “Crypto has provided a way out for people who want to invest, but in a way that allows them to essentially manage their money as they see fit. Although markets are running out right now, it’s not because cryptography isn’t viable,” he said.

“Ultimately, I see the decentralized financial aspect of cryptography, and the much higher returns this form of investment offers relative to traditional investments, as a way to make personal investment and finance much more accessible and fair to long term, “Starr continued. , adding that the recent market slowdown is a normal phenomenon in cryptography: these dramatic declines occur all the time and are expected in a new, high-growth industry.

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“I think investors who have experienced this kind of volatility in the past have thicker skin and, in turn, are not so nervous about volatility,” he concluded. “That’s why I think it’s time for regulators to decide to help the average investor by making cryptocurrencies and DeFi more accessible by offering listed vehicles so that everyone can reap the benefits of the future of finance and the Web3.” .

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This article originally appeared on Crypto is losing momentum, but younger generations are still coming together: what keeps them invested?

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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