The main conclusions:
Millennials and Boomers are leading cryptocurrency investors.
One in five American adults owns cryptocurrencies.
Boomers and Millennials are often unable to invest in real estate and stocks due to lack of funds.
Cryptocurrency trading has taken the financial world by storm. As of 2024, more than 560 million people around the world use this asset in their everyday life. Statistics show that younger generations are diversifying their investment portfolios beyond real estate and traditional stocks, relying on the sphere of cryptocurrencies.
Generation Y or Millennials are people born between 1981 and 1996. Compared to others, they invest the most in alternative assets. Boomers — those born between 1997 and 2012 — followed closely behind. Despite their reputation as the most tech-friendly generation, they're taking a slightly more cautious plunge into the crypto world.
There's also Generation X, people born between 1965 and 1980, and Baby Boomers, the demographic cohort born between 1946 and 1964. They prefer traditional assets such as stocks, bonds and real estate. Let's take a closer look at the percentage data for each generation.
Policygenius survey and its results
In April 2024, a Policygenius study was published. It found that one in five American adults under the age of 42 owned cryptocurrencies. In the period from October 16 to 19, 2023, 4,063 adult respondents were interviewed.
This analysis found that Boomers and Millennials are the most active investors in the US, favoring alternative assets such as cryptocurrencies and non-fungible tokens (NFTs).
Next, we present the results of the study:
22% of US citizens aged 27 to 42 (Millennials) and 20% of Americans aged 18 to 26 (Zumers) own digital currency. The percentage of crypto investors among Generation X (ages 43 to 58) and Baby Boomers (ages 59 and older) is only 10% and 5%, respectively.
45% of baby boomers and 24% of millennials invest in real estate. Only 13% of buzzers choose this asset class.
27% of baby boomers prefer stocks. Among the buzzers, about 18% are ready to invest in this niche.
About 60% of Boomers and Millennials are not against trying different innovative ways of investing. At the same time, only a third of the older generation is ready for such risks.
9% of Boomers and 8% of Millennials said they turn to social media first for financial questions. Generation X and Baby Boomers trust social networks much less - 3% and 1%, respectively. 62% of Millennials and Boomers have experimented with at least one financial approach promoted through social media.
On the other hand, 14% of Boomers and 18% of Millennials said they would consult a specialist first. This is significantly less than Generation X and Baby Boomers at 27% and 39%, respectively.
The numbers indicate significant differences in the propensity for one or another type of asset between generations. Older investors are much more conservative than younger investors.
What Influences the Choices of Boomers and Millennials?
Personal finance advisers suggest that young investors are more open to risk because of the factor of high prices in the housing market. Especially after the coronavirus pandemic, it became difficult for boomers and millennials to break into the real estate market. Mortgage rates have skyrocketed and median home prices have made the "American dream" of owning a home less attainable. Home prices in the US increased by 6.4% in early 2024 compared to a year earlier, reaching an average of $412,227.
The same applies to stocks. The younger generation invests less in this niche not for lack of desire. Almost two-thirds of Boomers and Millennials see the stock market as a great place to make money and build wealth. However, many simply do not have enough funds to invest.
These challenges make the crypto market more attractive to young people because it does not require huge investments. After all, it is not necessary to buy a whole bitcoin, you can buy only a small part of it. Cryptocurrencies also offer high liquidity. They can be spent as regular funds, as a bunch of brands and stores already accept payment in the form of this asset, or traded in the open market.
Cryptocurrency prices can fluctuate wildly, so it's important for young traders to thoroughly research each token and follow trends to avoid missing a bullish or bearish trend. Wild jumps offer investors opportunities to capitalize on price movements, but they also carry significant risks.
Therefore, the lack of sufficient funds to invest in real estate and stocks, as opposed to the availability of cryptocurrencies, is a major factor in the choice of millennials and boomers.
Cryptocurrency as a driver of economic growth
Cryptocurrencies have enormous potential to drive economic growth. They promote financial inclusion by enabling secure and transparent transactions, innovation and facilitating access to capital.
According to the survey, 84% of Binance users in Ukraine are sure that cryptocurrency is necessary for the development of the economy.
The decentralized nature of cryptocurrency removes traditional barriers to entry, allowing entrepreneurs to grow businesses without significant cash investments. The combination of operations in the cryptosphere and traditional money markets allows to compensate for the lack of liquidity. Access to the crypto market promotes innovation and economic development.
Cryptocurrencies can serve as a hedge against hyperinflation and devaluation. Individuals and corporations use them to protect their assets, conduct secure transactions, and maintain economic stability in the face of currency fluctuations.
Cryptocurrencies use blockchain technology to guarantee the transparency of financial transactions. The technology allows for immutable, verifiable records of transactions, making corrupt practices and other fraud more difficult to survive.
Provided that the appropriate legislation is carefully studied and adopted, cryptocurrencies can become a catalyst for long-term economic growth, expansion of social opportunities, and an increase in the standard of living not only in Ukraine, but also throughout the world.
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