A clear understanding of demographics offers valuable insight into strategy and policy. For crypto adoption, that’s critical because, beyond the numbers, there are stories unfolding around the world. Amid the misunderstandings, restrictions, and uncertainty, the interest in crypto adoption reveals a need for alternative investment.
Young woman shows her smartphone with with Bitcoin.Studio shot
Demographics Adopting Crypto
Piplsay released a study that showed 49% of millennials and 13% of Gen Z hold or own crypto. Another study by Stilt showed that 76.5% of millennials (age 25 – 40) and 17.4%, who were Gen Z (age 18 – 24) own crypto. The two studies reflect between 62% and 94% of respondents as either millennials or Gen Z owning crypto.
By comparison, both studies highlighted lower percentage ranges of Gen X ownership ranging from 4% to 38%, accounting for different regions. Notably, Gen X was lower in ownership, but they brought in more capital per transaction. The average purchase for Gen X was $9,611, for millennials, $8,596, and for Gen Z, that was $6,120, based on the Stilt analysis.
That is reflective of higher interest among millennials and Gen Z, but higher access to capital for investment among Gen X.
While crypto has been termed a youthful market, there are also significant investments among Gen X (age 41 – 56). Why is this important to understand in today’s investment context?
Little girl putting money to piggy bank at home.
Why it’s Important
As different countries face economic pressure amid anticipation of a recovery, investments are critical for everyone. For some, investments represent passive income. To others, investment is a hedge against future financial shocks. In other situations, investments represent financial freedom and wealth creation.
It’s presently insufficient to save for retirement, personal goals, and interests, with the looming threat of inflation and uncertain interest rates. One of the thoughts with a great deal of consensus among millennials and Gen Z is a desire to have money working for them so that they don’t have to work for their money for the rest of their lives. Some statements like “chasing the bag” are a daily mantra for many. They are all too well aware of the impact of financial crises such as 2008/9 that affected multiple economies.
Conventional investments like real estate and bonds have been out of reach to retail investors. This is because they largely require thousands, if not millions of dollars to begin with for eventual profitability. Their strict regulation has its benefits and downsides. They are still great avenues to explore and invest in terms of wealth creation.
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In the present day, alternative investments such as crypto assets have sparked interest simply by offering lower starting capital requirements and less documentation to get started. Furthermore, crypto assets offer a time advantage. This comes in two ways – full-time availability and deposit-withdrawal options in minutes.
Stock markets are open within limited hours, often 9 AM – 3 PM, and closed on weekends. Crypto exchanges are open 24/7! Additionally, with as low as $20 -$100, that’s enough to start investing in crypto assets. This kind of access appeals to younger generations greatly.
Rising bitcoin symbol addressing a new uptrend for cryptocurrencies. The industry is in its dawn … [+]
A New Hope
Stock markets have facilitated wealth creation for millions of people over the last few decades. It’s easy to take for granted that crypto is continuously available, on the other hand. However, it’s a great avenue for any investor to interact with the market at a time of their choosing.
Whether you are Gen X, millennial, or Gen Z with a 9-5 job, freelance gig, or remote work, finding access to diverse investment options is vital. At this time of writing, the crypto market is trading at $997 billion. At 13 years since its inception, it’s far behind compared to the overall investment market which is worth trillions of dollars. The New York Stock Exchange (NYSE), for instance, is worth $26.2 trillion – the largest stock exchange.
The crypto market is also in a bear year, which means that overall prices are on a downward trend. Although there’s a lot of fearful sentiment, it’s the best time to invest in learning before capital allocation to crypto assets.
Few asset classes have drawn the younger generations as much as crypto has. If the percentage of crypto owners remains young, then it follows that there’s a lot to learn about aspirations connected to these youthful futures.
Conclusion
The crypto industry is accommodating to retail investors. It’s available through mobile applications 24/7. In the midst of grim outlooks, there’s a new hope for both young and seasoned investors that they can grow with this industry as it evolves in the coming decades. Younger generations are embracing it in a hope of securing their future or financial freedom. They are unafraid of it being called a fool’s game or bubble. Older generations also aren’t left out.
If you can filter past the fear and learn during this bear market, you’ll be well-placed to enrich your investment journey.
