Millennial millionaires have invested half of their wealth in crypto
Rich millennials have harnessed the crypto-boom to make even more cash, according to a new survey. What does this mean for the wider investment industry?
Over the last few months, investing in cryptocurrency has become as ubiquitous as grabbing a morning coffee on the way to work. And if you weren’t at it, you’ve probably still found yourself having (or overhearing) conversations about what coins were worth investing in, the legitimacy of crypto as a means of replacing fiat currency and its impact on the environment.
Unsurprisingly, those who earn big bucks have significantly invested in crypto this past year, too. According to a survey carried out by CNBC this year, almost half of millennial millionaires (that’s anyone born between 1981 and 1996) have invested at least 25 per cent of their wealth in cryptocurrency, while more than one third have invested 50 per cent.
Spectrem Group conducted the survey of 750 investors with at least $1 million in investable assets. According to the company’s president, George Walker, “younger investors jumped on [crypto] early when it was not as well known. [They] were more intellectually engaged with the idea even though it was new. Older investors and the boomers were largely saying ‘Is this legit?’”
As for NFTs, almost half of those surveyed claimed to own some, while 40 per cent of those who don’t have at least considered purchasing one. Meanwhile, no baby boomer millionaires have more than 10 per cent of their wealth invested in crypto and 98 per cent don’t own NFTs.
These results highlight a generational divide in terms of wealth creation. As younger investors are able to generate wealth thanks to their understanding of volatile cryptocurrencies such as Bitcoin, this has the potential to hugely disrupt the wealth management and private banking industry.
One thing’s clear, though: whether you’ve got bags of cash to spend or not, there’s plenty of money to be made by putting cash into cryptocurrency. Invest wisely!