The popularity of cryptocurrencies as an investment vehicle has declined in the United States, according to a survey conducted by Bankrate. The study found that trust in crypto has declined across several groups, with millennials losing 20% of their trust in the asset, more than any other generational group surveyed.
Investors losing trust in crypto
according to Bankrate.
Crypto is still considered a new investment vehicle in today’s market, but some of its adherents are beginning to lose faith; a survey conducted by Bankrate (18) found that the number of Americans comfortable with investing in crypto has declined across generations (19).
Millennials, traditionally open and connected to new technologies like crypto, were among the groups losing the most trust in crypto. The percentage of millennials who were “very comfortable” or “comfortable” investing in crypto went from 49% in 2021 to 29% this year.
However, other groups also lost confidence in crypto, with the same index going from 37% to 21% among Gen X and from 21% to 11% among Baby Boomers. In total, only 21% had some confidence in crypto as an investment this year, compared to 35% in 2021.
According to the report, this is a result of the recent decline in the cryptocurrency market, created by the Federal Reserve’s intervention, raising interest rates to combat inflation.Greg McBride, CFA and Bankrate’s chief financial analyst, said stated.
Why Younger Generations Are More Likely to Believe in Crypto
The report also attempts to identify why younger groups tend to be more interested in investing in cryptocurrencies: these younger groups, including Generation Z and Millennials, are not hearing from sources like actual investors, but rather from social media and not-so-good sources like friends and family They are more likely to get financial advice from sources.
Even with this loss of trust in crypto, those who still believe in crypto believe that it could make them millionaires in the future, and according to a survey conducted by Harris Poll, the younger crowd, including millennials and Gen Zers, are the most confident in their ability to become millionaires through crypto. are the most confident group in their ability to become millionaires through crypto.
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