Millennials are people born between the end of the 1980s and the end of the 1990s. They are also grouped in the Generation Y group. In recent years, numerous studies have shown that millennials are more exposed to investments in crypto. They do this more than the Gen X group (people born between 1965 and 1979). It is therefore becoming normal that cryptos occupy a larger share in the investments of millennials.
Among millennials, it’s practically all for cryptos!
The main asset held by millennials is crypto. This is indicated by a report recently released by Bank of America. A conclusion drawn after interviewing 1,052 millennials, but also people from the previous generation. For a meaningful scaling of the data in the report, the bank made a comparison with the stock acquisitions and posture of Gen X members, while taking into account the investments in stocks and cryptos of the two groups.
In total, 29% of millennials estimate that crypto represents a prime opportunity to create wealth. Nearly 50% hold investments in cryptos. At the same time, only 7% of the older age group view things the same way. The latter category is more inclined to invest in equities than that of millennials. We learn that 75% of millennials believe that it is impossible with stocks to obtain returns above the average of what cryptos offer.
“For the youngest, stocks are no longer quite interesting. The most educated generation in history is turning to alternative investments instead. Conventional investment advice suggests that young investors hold more stocks, not less, than older investors (…) Yet 21-42 year olds only hold ¼ of their portfolio in stocks. However, they represent 55% of the portfolio of investors aged 43 and over.the report noted.
Additionally, 80% of young investors are looking for alternative investments, such as private equity, commodities, real estate and other tangible assets. They devote three times as much of their portfolio to alternative strategies (16%) and half as much to equities (25%) as older investors (5% and 55%, respectively).
Furthermore, Bank of America indicates that the gap in investment choices between the two groups is explained by the fact that the older group is very uninformed about cryptos. 64% of the youngest say they have a high mastery of cryptos. Only 12% of older people have a good command of the subject.
Receive a digest of news in the world of cryptocurrencies by subscribing to our new service of daily and weekly so you don’t miss any of the essential Tremplin.io!
