While cryptocurrency is still viewed as a novel investment option in the present market, some of its supporters have begun to waver. According to a Bankrate survey, Americans of all generational categories are generally becoming less comfortable investing in cryptocurrencies.
One of the groups that has lost the most confidence in cryptocurrency is the millennial generation, which has typically been open and connected to new technology like cryptocurrency.
The percentage of millennials who were “very comfortable” or “comfortable” investing in cryptocurrencies dropped to 29% this year — all the way from 49% in 2021.
Others including Gen Xers and baby boomers similarly lost faith in cryptocurrencies, falling from 37% to 21% and from 21% to 11%, respectively. Compared to 35% in 2021, only 21% of investors expressed some level of faith in cryptocurrencies this year.
This, according to the article, is the outcome of the recent collapse of the cryptocurrency market, which was brought on by the Federal Reserve of the United States’ interference by hiking interest rates to fight inflation.
“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,” said CFA and Bankrate’s chief financial analyst Greg McBride.
The survey also seeks to explain why young people are more likely to be interested in crypto investments. It has been suggested that these younger generations, especially Gen Zers and Millennials, are more likely to seek out financial advice from questionable sources including social media, friends, and family members than from professionals like investors.
Despite this decline in confidence in cryptocurrency, many who still hold onto it think it has the potential to make them billions in the future. According to a Harris Poll survey, younger generations like millennials and Gen Zers are the most confident when it comes to their ability to turn into billionaires with the help of crypto.