The collapse in the crypto asset market forced not only the older generation, but also young people to reconsider their attitude to investing in digital assets.
Bankrate conducted a survey, according to which, the number of Americans who are comfortable investing in digital currencies has decreased. At the same time, a decrease in the popularity of crypto assets is noted in different age groups.
More than others, millennials, who were previously considered the most open to new technologies, have lost confidence in cryptocurrencies. The percentage of young people for whom cryptocurrencies were a convenient way to invest decreased from 49% in 2021 to 29% in 2022.
The older generation, people who are now between 40 and 55 years old, are also losing trust in digital assets. Last year, about 37% of them considered cryptocurrencies to be a convenient way to invest. This year their share has dropped to 21%. Among the older generation, the figure fell from 21% to 11%.
According to the Bankrate report, the main reason was the collapse of the cryptocurrency market, as well as the economic crisis and the actions of the US Federal Reserve. The Fed has raised interest rates in an effort to curb inflation, says Greg McBride, chief financial analyst at Bankrate:
“It’s much easier to be enthusiastic about investing in something when you see its value constantly growing. The real test of faith comes when the market crashes and what you until recently passionately believed is no longer profitable. Recent adjustment movements have forced many investors to radically reconsider their attitude towards the digital asset market.”
Earlier, the British cryptocurrency exchange Bitstamp published the results of its study, according to which global confidence in the crypto industry is not fading, despite the ongoing market crisis.
Source: Bits
I am an experienced journalist, writer, and editor with a passion for finance and business news. I have been working in the journalism field for over 6 years, covering a variety of topics from finance to technology. As an author at World Stock Market, I specialize in finance business-related topics.
