By Landon Manning
With Bitcoin (BTC) steadily growing in notoriety, the four main generations in the United States — baby boomers, Generation X, millennials and Generation Z (zoomers) — have all embraced it in nuanced and interesting ways.
Several gut feelings about each of these generations can, in turn, be mapped out as they relate to Bitcoin and the world of cryptocurrency in a predictable way. Millennials, for example, had generally come of age and gone through young/early middle adulthood as Bitcoin was first launched, and this has had a corresponding impact on their collective acceptance of cryptocurrency, while the zoomers are growing into a world where this economic revolution has always been present. The boomers collectively hold massive amounts of wealth that can be thrown around in a variety of investment strategies, and yet are slow to adopt “newfangled” technology, while Generation X has always been overshadowed in terms of cultural prevalence.
Nevertheless, although some “common sense” understandings of each demographic are basically true, a deeper look into coin ownership and investment reveals interesting dynamics about the Bitcoin community as a whole.
Millennial Bitcoin Adoption
The millennial generation, people of ages 26 to 41, saw its oldest members still in their twenties as Bitcoin first hit the scene in 2009, with plenty still in their twenties today. It is no surprise, then, that so many of the most prominent cryptocurrency entrepreneurs and captains of this new industry hail from this cohort of Americans, filling many of Bitcoin’s most prominent roles.
In 2019, millennials held bitcoin at a rate of three- or four-times as much as the next-oldest age group, and the vast majority of millionaires in this age group have some stake in bitcoin, as much as 80%. Alongside the visibility of their roles comes a “silent majority” effect over the community, with recent data claiming that a full 76% of all cryptocurrency buyers are millennials. When it comes to these four main generations, it seems pretty incontrovertible that millennials see the greatest acceptance of bitcoin.
Generation X Bitcoin Adoption
Nevertheless, this same data has produced an interesting caveat: Although Generation X, made up of people from ages 42 to 57, only makes up about 5% of the current pool of cryptocurrency purchasers, they actually purchase the most bitcoin per capita. With the average millennial Bitcoiner spending about $8,500 on cryptocurrency, Generation X spends more than $9,600, edging out the most numerous demographic and blowing both the oldest and youngest out of the water. Although large numbers of Generation X are still wary of a big commitment, the fact remains that its rank-and-file often have less debt and more assets than millennials, enabling those that choose the path of Bitcoin to hold quite substantial portfolios.
Baby Boomer Bitcoin Adoption
When it comes to having a comfortable amount of savings to invest, no other generation can hold a candle to the baby boomers, people of ages 58 to 76, who came of age when the United States was the richest and most powerful nation in the history of the world. Less than 2% of today’s cryptocurrency buyers are from this generation, and more report distrust of volatility than in any other age cohort. Nevertheless, not only do large numbers display interest in the cryptocurrency in different contexts and situations, but much of the traditional finance world is embracing the new model of decentralized currency. Although boomers, by themselves, are by far the least interested group, it can’t be denied that the new penetration of Bitcoin into all spheres of life has impacted them, too.
Generation Z Bitcoin Adoption
Finally, the real wild card is Generation Z, affectionately known as the “zoomers,” ages 10 to 25, who ranged from middle school-aged to unborn when Bitcoin was first introduced to the world. The first major price spike in bitcoin, which truly made it a household name, happened four-and-a-half years ago, and by now, all of those in the younger generation have been aware of the crypto asset for some time. Doubtlessly impacted by the COVID-19 pandemic and more acutely aware of declining economic fortunes than others, Generation Z has more positive views of the long-term viability of cryptocurrency investment than any other generation, and has likely pinned the highest hopes on it providing the key to independence and economic dignity. Of course, seeing as this group does contain no small number of children, overall it makes up only around 17% of cryptocurrency buyers. However, this does blow Generation X and the boomers out of the water, though this number is only liable to increase as more zoomers reach investing age.
Conclusion
Each of the four generations that make up the majority of the U.S. population (not counting the very young generation alpha, or the very old silent generation) has collectively approached the new and dynamic world of bitcoin and cryptocurrency in slightly different ways. Factors like digital literacy and trust in traditional financial institutions, not to mention access, have colored each group’s approach in ways that are intuitive and understandable. Nevertheless, each group has had some surprising ways of engaging with the new world, and all of them only seem to be growing as Bitcoin grows in prominence. Although these age dynamics are fluid and it’s anyone’s guess how younger generations will come to view Bitcoin, one thing seems clear: For the world’s number one cryptocurrency, the future is bright.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
