- A CNBC study shows that most millennial millionaires not only own crypto assets, but plan to continue buying more in 2022.
- 5 out of 10 millennial millionaires have more than 50% of their wealth invested in bitcoin and other cryptocurrencies. Unlike generations before them, they prefer traditional assets.
83% of millennial millionaires of the United States have acquired cryptocurrencies in these years and plan to continue increasing their crypto assets in 2022. In contrast to generation X who barely invest 25% of their money in cryptocurrencies and baby boomers who only 4% of their heritage in digital money.
This is the conclusion of the most recent Millionaire Survey carried out each year by the US news network CNBC. Investors from the United States with more than $ 1 million of equity were consulted for the study.
53% of the millennials surveyed said they had at least 50% of their wealth invested in cryptocurrencies, according to the survey. While about a third of the millionaires of this generation own a little more than 60% of their wealth in bitcoin, ether and other types of digital assets.
Millennials are the generation that was born between 1981 and 1996, right after Generation X (born between 1969 and 1990). While baby boomers are those who were born between 1949 and 1968 and are now between 53 and 72.
On The Flipside
- The study reveals that there is a close relationship between the age of investors and investments in cryptocurrencies. As investors get younger, their investments in crypto assets get bigger.
The finding is logical because they believe that young people are closer and more in technology than older adults. Digital money is the result of the latest technological advances, a field that is very familiar to millennials in contrast to older adults.
Crypto Generation Gap Widens
The results suggest that crypto is creating a vast generational schism in investing and wealth creation,” the CNBC report highlights.
The media highlights that:
“Cryptocurrencies have become the primary source of wealth creation and asset growth for many younger investors who got in early and have seen rapid returns."
According to George Walper, the president of the Spectrem Group, the firm that conducted the survey with CNBC, “this is a big difference between different generations of wealth.”
The growing rise in cryptocurrency investments is posing a dilemma for wealth managers, CNBC notes. The biggest clients of banks, wealth management firms and investment advisers are people who are still wary of cryptocurrencies and prefer to invest in traditional assets.
However, they need to renew their clientele and meet the wishes of the next generations to maintain their business and this happens by providing adequate advice on investments in cryptographic products.
"I'm not sure the wealth management industry has recognized that they really need to think of them as completely different generations,"
Walper noted. And he added:
“Most firms were hoping to ignore it. But millennial millionaires are not going to just ‘grow out’ of crypto."
Why You Should Care?
- One of the most interesting findings of the study is that despite the volatility of cryptocurrencies and the recent falls in the price of bitcoin and other cryptocurrencies in the markets, millennial millionaires continue to bet on digital money.
On the contrary, the plans of almost half of the millennials surveyed (48%), is to continue accumulating cryptocurrencies next year. Another 39% plan to maintain their current investments in crypto and only 6% of investors in this generation plan to reduce their investments in crypto in 2022.