Younger generations are 7.5 times more likely than investors aged 43 and older to hold crypto in their portfolios, according to research from Bank of America. The newest generation of investors sees chances for investment in cryptocurrencies as they lack confidence in stocks. In fact, it is their top option as an alternative, the bank noted.
Crypto is preferred over stocks by younger people
Bank of America’s 2022 Private Bank Study of Wealthy Americans was released this week. The research emphasizes the findings of a May–June online poll of 1,052 adults over the age of 21 who had investable household assets of at least $3 million. The responders are a sample of the nation’s high-net-worth individuals, according to the bank, who also stressed that they are not necessarily Bank of America customers.
Traditional financial wisdom contends that younger investors hold more equities than older ones, not the reverse. However, compared to investors aged 43 and older, who hold 55% of their portfolio in equities, the 21 to 42 age group only maintains 25% of their portfolio in stocks, according to the survey.
In fact, just 7% of the older group agreed as compared to 29% of the younger group who said that cryptocurrencies offered a significant possibility to building wealth. The younger generation is often more interested in private equity or debt, as well as sustainable or ESG-related investments, the research added.
Crypto and the younger generation
This is not the first survey that shows that younger people are more likely to invest in crypto. That is because of the awareness they have regarding the topic. At the same time, millennials and Gen Zs are always more open to new forms of investments as compared to adults. Crypto has so much volatility that an older person might not be able to handle those swings. And even the general idea is that as one grows older, their portfolio should have less risky assets. One would not want to lose 50% of their wealth in market volatility at the age of 50, Right? These things play a major role in why younger generations are so much more likely to add crypto to their portfolio.
What are your thoughts on Bank of America’s survey showing that younger generations are 7.5 times more likely to hold crypto? And do you agree with the reasoning as to why this is the case? Let us know in the comment below. And, if you found our content informative, share it with your family and friends.