Millennials and cryptocurrencies have been a perfect fit for the longest time. The current data shows that a significant number of millennial millionaires have invested more than half of their wealth in cryptocurrencies.
The latest data from the CNBC Millionaire Survey shows that the largest percentage of millennial millionaires has invested in digital assets and that this group intends to increase their crypto holdings in 2022.
Millennials investing in crypto because of inflation
Out of the millennials involved in the survey, 83% owned cryptocurrencies, while 48% were expected to have additional holdings in 2022. Only 6% of the respondents have stated they will sell some of their holdings in the coming months.
Moreover, 53% of the millennials involved in the survey owned half of their wealth in crypto. A third of them held over 75% of their wealth in cryptocurrencies.
The survey from CNBC also looks at the different sentiments in the market. The results show that millennials were lured towards cryptocurrencies due to inflation fears. The group viewed inflation as a great threat to economic growth.
The majority of the millennials also thought that inflation would be a permanent problem, with 45% of them noting they were significantly concerned about the phenomenon. However, the majority of them were optimistic about the economy’s future, with 59% expressing faith in the Fed and its ability to combat inflation.
The other reason for the increased interest in cryptocurrencies by millennials is the dysfunction of the US government. The two factors account for 23% of the entire vote.
In regards to inflation, the survey showed that millionaires had a different perspective on the matter. While the general public was afraid of inflation because of the rising prices, millennials were more concerned about the increasing interest rates and how this would impact their investments.
Millionaires and crypto: A perfect match?
Over the years, millennial investors have shown increased interest in cryptocurrencies. Another report published mid this year showed that 30% of millennials held around half of their money in Bitcoin. Therefore, the current survey shows a significant growth in millennial preference of cryptocurrencies over fiat.
However, interest in cryptocurrencies is mostly concentrated among millennial investors. Previous surveys have shown that the older generations are less interested in the asset class.
Investors aged above 40 years and above have held a small portion of their wealth in crypto. Moreover, the understanding of cryptocurrencies among the older generations is minimal, attributed to the small number of Xennials involved in this asset class.
A recent survey conducted by Grayscale showed that the number of crypto investors in the US had increased significantly. The survey revealed that US investors were well-versed with Bitcoin and Dogecoin.
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