The popularity of cryptocurrency as an investment vehicle is dwindling in the U.S., according to a survey made by Bankrate. The survey found that trust in crypto has diminished across several groups, with millennials losing 20% of their trust in the assets — more confidence lost than in the other generational groups surveyed.
Investors Losing Confidence in Crypto According to Bankrate
While crypto is still considered a new investment vehicle in the current market, some of its believers have started to lose faith. A survey made by Bankrate shows that the number of Americans comfortable with investing in crypto has dropped across generational groups.
Millennials, who have traditionally been open and connected to new tech like crypto, have been one of the groups to lose the most confidence in crypto. The percentage of millennials that were “very comfortable” or “comfortable” investing in crypto went from 49% in 2021 to 29% this year.
However, other groups also lost confidence in crypto, with the same metrics going from 37% to 21% among Gen Xers, and from 21% to 11% among baby boomers. In total, only 21% had some degree of confidence in crypto as an investment this year, compared to 35% in 2021.
According to the report, this is the result of the recent cryptocurrency market downfall, produced by the United States Federal Reserve’s intervention, raising interest rates to combat inflation. Greg McBride, CFA and Bankrate’s chief financial analyst, stated:
It is a lot easier to be enthusiastic and believe in something when you see the value going up continually. The real test of belief comes when the chips are down, and a lot of investors have realized they now feel differently about investing in cryptocurrency.
Why Younger Generations Are More Inclined to Believe in Crypto
The report also tries to reveal why younger groups tend to be more interested in investing in cryptocurrency. These younger groups, including Gen Zers and millennials, are said to be more inclined to get financial advice from less-than-ideal sources like social media and friends and family, instead of hearing from sources like actual investors.
Even with this loss of trust in crypto, the ones that still believe in it also believe that crypto might make them billionaires in the future. A survey made by Harris Poll shows that the younger crowds, including millennials and Gen Zers, are the most confident groups in their ability to become billionaires through crypto.