The survey found that confidence in crypto-currencies has declined in several groups, with millennials losing 20% of their confidence in these assets – a greater loss of confidence than in other generational groups surveyed.
Investors are losing confidence in crypto-currencies, according to Bankrate.
While crypto is still considered a new investment vehicle in today’s market, some of its believers have begun to lose faith. A survey conducted by Bankrate shows that the number of Americans comfortable investing in crypto-currencies has dropped across all generational groups.
Millennials, who have traditionally been open and connected to new technologies like crypto, were one of the groups to lose the most confidence in crypto. The percentage of millennials who were “very comfortable” or “at ease” to invest in crypto has dropped from 49% in 2021 to 29% this year.
However, other groups have also lost confidence in crypto, with the same metrics falling from 37% to 21% among Gen Xersers, 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 drop in the crypto-currency market, produced by the intervention of the U.S. Federal Reserve, which raised interest rates to fight inflation. Greg McBride, CFA and chief financial analyst at Bankrate, said:
It’s much easier to be enthusiastic and believe in something when you see the value continually increasing. The true test of belief comes when the chips are down, and many investors have realized that they now feel differently about investing in crypto-currencies.
Why are younger generations more likely to believe in crypto-currencies?
The report also attempts to reveal why younger groups tend to be more interested in crypto-currency investments. These younger groups, including Generation Z and millennials, are reportedly more likely to get financial advice from disreputable sources such as social media, friends and family, rather than hearing from sources such as actual investors.
Even with this loss of confidence in crypto-currencies, those who still believe in them also think that crypto-currencies could make them billionaires in the future. A survey conducted by Harris Poll shows that younger people, including millennials and Generation Z, are the most confident groups in their ability to become billionaires through crypto.