A new survey by Policygenius found something surprising: young people are more into cryptocurrency than stocks! This is a big change from the past, where stocks were the way to build wealth.
The survey polled 4,000 Americans in October 2023. Here’s what they found:
Over 20% of millennials and Gen Z (born between the mid-1990s and early 2010s) own cryptocurrency. That’s almost as many as those who own real estate (around 20%).
Gen Z, in particular, seems especially interested in crypto. 18% own crypto, compared to only 18% own stocks.
This trend isn’t limited to just a few people. The survey suggests that 1 in 5 Americans under 42 (mostly Gen Z and millennials) own cryptocurrency.
They’re even getting into NFTs (digital collectibles). While not as popular yet, 9% of Gen Z owns NFTs, followed by millennials at 8%.
Why the Interest in Crypto?
Several factors might be driving Gen Z’s enthusiasm for crypto.
Tech-Savvy Generation
Gen Z is a digital native generation, comfortable with online platforms and new technologies. Cryptocurrency’s inherent digital nature and association with innovation might appeal to them more than traditional stocks.
Accessibility
Investing in crypto can be perceived as easier and more accessible than traditional methods. Cryptocurrency exchanges offer user-friendly interfaces, fractional shares allowing investment with smaller amounts, and potentially faster transactions.
Potential for High Returns
The significant price fluctuations associated with cryptocurrency, particularly in the past year, might be seen as an opportunity for high returns by some in Gen Z. This can be a double-edged sword, as the high volatility also carries a higher risk of significant losses.
Societal and Economic Factors
Buying a house used to be a big goal for most people, but for Gen Z, it’s gotten a lot tougher. Interest rates are higher, and house prices are way up, making the dream of homeownership seem far off. This might be pushing Gen Z to look for other ways to invest their money.
On top of the housing struggles, some Gen Z might not trust traditional banks and investment companies as much as older generations. Cryptocurrency, with its decentralized nature (meaning it’s not controlled by one big institution), might seem like a more attractive option for them.
A Look Beyond the Numbers
The survey also gives a peek into how Gen Z and millennials view their finances. Interestingly, they reported feeling pretty good about how they manage their money. This could be because they’re more informed than ever before. With so much financial information available online, Gen Z is a financially savvy generation.
It’s important to remember that this survey was done before Bitcoin’s recent price jump. Bitcoin used to be around $30,000 in October 2023, but now it’s trading closer to $70,000! This big rise might make Gen Z even more interested in crypto.
Even though the market can change quickly, this survey gives valuable insights. It shows a clear shift in how younger generations are thinking about investing
What is the Future of Crypto and Gen Z?
While it’s too early to say for sure what the long-term effects of Gen Z loving crypto will be, there are some things to consider. Crypto is a brand new investment option, and like anything new, it has risks. Its value can swing wildly (think rollercoaster!), and governments are still figuring out how to regulate it all.
But this survey shows that Gen Z isn’t afraid to take a chance, especially if it means potentially making more money. As they grow up and get more money, their choices about where to invest will definitely change the way finance works in the future.
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