- A survey revealed that 40% of millennials prefer investing in crypto over real estate
- 31% of Gen X and 24% of Gen Z agreed with Millenials
- Also, respondents indicated they believe owning cryptos is the key to homeownership
Notably, Kraken revealed that only 1 in 5 participants owned or had previously owned cryptos. Also, of those with current crypto holdings, 85% indicated a desire to buy more.
Millennial is a popular term used to refer to the generation of people born from the early 1980s to the late 1990s. This generation has struggled to meet the same financial goals set by previous generations. This is due to situations like the 2008 and the more recent 2020 market crash.
In addition, rising inflation and depreciation of fiat currency savings have left many millennials feeling disappointed with traditional saving options. As such, to meet their goals millennials and others are starting to see the value in diversifying their investments. This is where more lucrative assets like crypto come in. In line with this, Kraken Australia Managing Director, Jonathon Miller, noted,
“Australians still maintain some conservative attitudes toward investment. Property has been a cultural norm and high on the wish list for most investors, but as affordability continues to be an issue, we’re seeing more young people look for other options to grow wealth.”
In fact, 22% of respondents believe cryptos saving or investing in cryptos makes it easier to save for a mortgage deposit. This is because cryptos like Bitcoin are rising in prominence as a good store of value, similar to gold. Additionally, by nature cryptos are deflationary due to their tokenomics and limited supply.
Of note, 31% of Gen X (1960s to 1980s) and 24% of Gen Z (1990s to 2010) agreed with millennials. On the other hand, 50% of Boomers (1940s to 1960s) do not own any crypto. Boomers cited volatility as a major concern. Also, the recent crypto market crash revealed that new investors were the first to dump their cryptos as compared to more seasoned investors. As such, even though investment perceptions are changing in favor of crypto, perhaps not enough new investors are prepared for the wild ride.