The preference towards the use of cryptocurrencies as an investment and store of value continues to maintain a generational gap, with Millennials at the forefront in the use of decentralized technologies – especially millionaire investors.
According to the latest edition of the CNBC Millionaire Survey, the majority of millennial millionaires have invested in cryptocurrencies and expect to increase their holdings in the upcoming months.
The survey gauges the market sentiment in various areas of the economy. The results show that inflation is the primary concern among millennials, who see the phenomenon as a threat to the growth of the economy. The second most significant risk is, ironically, the US Government Dysfunction. Both share 23% of the total vote.
The survey revealed that 83% of millennial millionaires own cryptocurrencies, with 48% expecting to buy even more in 2022. Only 6% expect to reduce their holdings.
The results also showed that 53% of millennial millionaires own more than 50% of their wealth in cryptocurrencies. At the same time, a third of millenials said they have 75% or more invested in cryptocurrencies.
As for inflation, most millennials believe it will be a permanent phenomenon, with 45% of millennials showing more significant concern. However, most are optimistic about the future of the economy with an overall 59% confidence in the Fed’s ability to deal with inflation.
Another aspect to note is that millionaires perceive the threat of inflation differently than the majority of the population. Robert Frank, CNBC Wealth Editor, explains that while ordinary people fear the rising prices inherent in inflation, millionaires tend to worry about rising interest rates and how that affects their investments.
The interest of millennials in cryptocurrencies has increased over time. A previous Cryptopotato report showed that millennial investors with 50% of their money Bitcoin accounted for a non-trivial 30% of the total number of respondents in the June issue. The rise towards 53% reveals an increase in interest regardless of prices.
However, it seems that the love for cryptocurrencies is merely a millennial thing. As generations get older, confidence in this asset class declines. A survey covered by Cryptopotato revealed that Xennials, or those around 40-years-old, allocated 9.2% of their funds. In comparison, Generation X’s exposure is approximately 6.3%. Generation X comes before the Millennial Generation.
And among Baby Boomers and earlier generations, the preference for Bitcoin investments is almost minimal, with san average investment of 10% of wealth among the top 10% of the population.