Younger Generations More Bullish on Cryptocurrencies

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Younger Generations More Bullish on Cryptocurrencies

Is your age a factor in your decision to invest in cryptocurrency? According to the 2022 Investopedia Financial Literacy Survey, which polled 4,000 Americans on their financial habits, younger Americans are usually more optimistic about the future of digital currency. However, doubters abound, especially among millennials (aged 26-41) and Generation Z. (ages 18-25).Here’s a deeper look at the findings, which divide bitcoin investing opinions into many major groups.

Key Takeaways

  • Millennial, Generation X, and Generation Z investors are the most likely to own cryptocurrencies, whereas baby boomers are very unlikely to do so.
  • Cryptocurrencies, along with equities and investment funds, are the most popular sort of investment for millennials.
  • Younger investors think that bitcoin will provide the best return on investment over the next decade.
  • Despite the excitement, many investors of all ages fear that cryptocurrencies are “too hazardous” for their portfolios.

Millennials Are Most Likely to Invest In Cryptocurrency

Millennials are more inclined than other generations to invest in bitcoin. Sixty-four percent of millennials polled said they had assets, with 38% having bitcoin investments. Nearly 60% of young investors own digital currencies. More precisely, 15% of millennials possess a non-fungible token (NFT), a digital asset that uses the same blockchain technology as cryptocurrencies.

Older and richer millenials are more inclined to invest in cryptocurrency. 59% of millennials earning at least $75,000 per year own digital currency, compared to 21% earning less than $75,000 per year. Millennial males are also around twice as likely as millennial women to invest in bitcoin.

“It seems to reason that millennials are the most inclined to invest in cryptocurrencies,” Whitney Hansen, a financial counselor in Boise, Idaho, said. “They are far enough along in their professions to have some spare money for investments, but they have a long enough time horizon until retirement to be ready to take on the greater risk.”

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“Boomers are correct to be wary of riskier investments like cryptocurrency since they don’t have as much time to recoup in the case of losses,” Hansen said.

Gen X and Gen Z Are Equally Bullish

The next most likely to invest in cryptocurrencies is Generation X (ages 42-57), with 28% of Generation X respondents claiming to have cryptocurrency investments. With 23% holding cryptocurrency, Generation Z is close following. Cryptocurrencies are the second most popular investment for both categories, behind only equities and ahead of mutual funds. In addition, Generation X and Z predict that cryptocurrencies would provide the best financial returns over the next decade, followed by equities.

The baby boomer generation is a notable anomaly (ages 58-76).According to poll data, 43% of baby boomers own equities, yet just 6% own cryptocurrency. Baby boomers are exceedingly unlikely to invest in NFTs, with 0% of them doing so. Stocks, according to baby boomers, will provide the highest returns, followed by mutual funds and real estate.

During the price rise from 2017 to 2021, cryptocurrency rewards substantially surpassed other investments. However, multiple huge, unexpected price decreases have made many investors wary about investing. Cryptocurrencies have a big and loud following. Recent investment success, along with promotion from cryptocurrency firms, such as the newly rebranded Arena (previously Staples Center), is expected to keep investors interested.

Enthusiasm and Self-Confidence Are High, But So Is Confusion

While many people are enthusiastic about bitcoin, there are still many naysayers. More than 40% of respondents across all age categories believe bitcoin is too hazardous or unclear.

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“Because baby boomers did not grow up with computers, they may not be interested in this new asset class,” said Michael Anderson, a financial adviser and Certified Financial Planner (CFP) with Marinantha Financial in Ventura, California. “Stocks and investment funds have shown to be long-term winners for Baby Boomers. With retirement approaching or already here, individuals may want to continue with their current plan rather than diversify into cryptocurrency.”

Even 44% of millennials believe bitcoin is too complicated or hazardous for their money. Meanwhile, 58% of baby boomers believe bitcoin is too complicated. Less than half of millennials said they could describe how cryptocurrencies function, while just 5% of baby boomers and 3% of NFTs understood NFTs well enough to explain how they work to someone else.

While there is a lot of uncertainty and excitement, millennials are the most enthused about cryptocurrency. Perhaps their experience with the Financial Crisis in 2007-2008, as well as their status as digital natives, explains their passion. More over half of millennials feel bitcoin technology is for everyone, and 49% say it represents the “future of money.”

Despite the enthusiasm of many younger investors, perceptions of high risk and difficult technology continue to be a barrier to greater bitcoin acceptance. Only time will tell if the optimists or skeptics are correct about crypto.


The 2022 Investopedia Financial Literacy Survey assesses U.S. adults’ generational understanding of their own financial literacy. Between January 27 and February 7, 2022, an opt-in, online self-administered questionnaire was sent to 4,000 U.S. individuals, 1,000 from each of the following generations: Generation Z (18-25), millennials (26-41), Generation X (42-57), and baby boomers (58-76).Quotas and data weighting were employed to assure equal representation of race/ethnicity, gender, region, and wealth across the board and within each generation. See the entire approach for additional information.

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Survey research and data analysis led byAmanda Morelli.

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