Is age a factor in the decision you make on investing in cryptos? In the latest 2022 survey done by Investopedia on 4,000 Americans’ investment habits, younger Americans are bullish on the future of cryptos. 

Millennials Bullish on Cryptos

Of all the generations surveyed during the study, millennials are more bullish about digital assets. 64% of the surveyed millennials indicated they have some investments, and 38% revealed they have a form of crypto. 60% of millennial investors prefer digital assets, with 15% of them owning a non-fungible token (NFT). 

Older and wealthier millennials are more likely to jump into cryptos. Of those earning at least USD 75,000, 59% of them hold some digital currencies compared to 21% of those earning less than USD 75,000. Men in the millennial category are twice as likely to go crypto than women. 

According to Whitney Hansen, a financial coach in Boise, Idaho, the entire scenario of millennials going crypto makes sense. Hansen argues that they make far enough in their careers to generate some disposable income for investment. Again, they are far off from retirement and can take that risk.

Hansen added that baby boomers have to be extra cautious because of time. In the event of losses, they might not have ample time to recover. 

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Equally Bullish are Gen X and Gen Z 

When it comes to Gen X (42-57 years), about 28% of the respondents said they own some cryptos. Generation Z follows closely behind, with 23% owning some crypto assets. These two groups consider cryptos as the second most common investment after stocks, but before mutual funds. Over the next decade, Gen X and Z hold the view that cryptos will yield impressive results, followed by stocks. 

Finally are the baby boomers, with only 6% of them into the cryptos. When it comes to NFTs, baby boomers are not likely to invest in them. They hold that stocks, followed by mutual funds and real estate, will offer better returns. 

Although Enthusiastic, Cryptos Come with a Lot of Confusion

Although optimistic about cryptos, there is a lot of skepticism. Over 40% of the respondents indicated that cryptos are too confusing or risky.

Michael Anderson, a financial advisor and Certified Financial Planner (CFP) at Marinantha Financial Ventura, California, most baby boomers did not grow up with computers and are less bothered about new assets. They have been pretty successful with stocks, real estate and mutual funds and, therefore, would like to stick to what they know best as opposed to diversifying. 

Even Millennials Say Cryptos are Confusing

Even among millennials, cryptos are confusing. 44% of millennials say crypto assets are risky, while 58% of baby boomers indicate they are too confusing. 

Even with the confusion, millennials stand out to be the most enthusiastic about digital assets. This might have been precipitated by the 2007-2008 financial crisis and native currencies explain the desire for new asset classes. However, excitement, perception of risks and tech challenges remain major hurdles for crypto adoption and growth.