Gen z Seems to Like Cryptocurrencies more than Mutual Funds

Cryptocurrencies

Cryptocurrencies Cryptocurrencies are the most common investment for millennials, on par with investment funds.

Cryptocurrency continues to make headlines. Cryptocurrencies like Bitcoin and Ethereum are making their way into young investors’ retirement plans. Cryptocurrencies are the most common type of investment for millennials, on par with stocks and investment funds. The value and future of NFTs and crypto seem to be debated daily. But one fairly consistent narrative about crypto is that Gen Z and Millennials are wild about investing in it. ‘How Millennials See Their Financial Future’ report says that 40% of millennial survey participants have invested in crypto.

40% of Millennials completely agreed with the statement “I’m interested in investing in cryptocurrency,” compared to 29% of Gen Z.” Millennials aged 25 to 40 are investing in crypto than in mutual funds. And most millennials either already own crypto or are considering buying. Millennial, Generation X, and Generation Z investors are most likely to hold cryptocurrencies, while baby boomers are highly unlikely to invest in digital currencies. For NFTs, baby boomers are extremely unlikely to invest, with 0% of baby boomers investing in NFTs. Baby boomers believe that stocks will offer the best returns, followed by mutual funds and real estate.

 

Cryptocurrencies are the most common investment for millennials:

As per the How Millennials See Their Financial Future report this is greater than the percentage of millennials who own mutual funds.” Moreover, the percentage is almost equal to those millennials who own stocks. 70% of millennials who own crypto and have an individual retirement account hold their digital assets in their retirement account. Beyond retirement strategies, younger people are more likely to be comfortable betting on cryptocurrency in general.

The next generation of investors are super online instead of traditional investments, many Gen Z and young millennial investors, from teens to those in their early 20s, are bullish on cryptocurrency. Younger investors believe that the greatest return on their investments over the next decade will come from cryptocurrencies. Younger people also have a lot more time to wait before they’re going to retire. As a result, they presumably can take on more risk with their investment strategies. This may be another reason why crypto is more popular among younger investors’ retirement saving plans.

According to the “World Wealth Report,” 71% of wealthy participants have invested in digital assets such as crypto, NFTs, and exchange-traded funds. But many investors lose money chasing easy profits in the immensely volatile environment that is the crypto world. For example, the price of Bitcoin is closer to $42,000. Some are predicting that Bitcoin will hit $100,000 shortly, but no one knows where prices are heading. As per recent studies, 94 percent of Crypto Buyers are Gen Z or Millennials compared to just 6.14 percent across all other buyers over the age of 40. “In spite of more limited access to credit and greater amounts of debt, Gen Zers and Millennials are still putting their money and hopes into cryptocurrency in a big way.