In the face of market turmoil, investors’ faith in kyptos, even its staunchest advocates, has begun to waver. For US investors anyway, the popularity of cryptocurrency is on the decline. A completely understandable situation in the face of a sharp drop in the prices of major assets such as Bitcoin (BTC) or Ethereum (ETH).
Crypto Investors: A Crisis of Trust Among Millennials
The first half of 2022 has been very difficult for America Market encryption. This year, Bitcoin and Ethereum have lost nearly 50% of their value. Despite some brief surges, it is clear that the cryptocurrency market as a whole is at a standstill. Without certainty, experts say cryptocurrency prices may drop further before a sustained recovery. Faced with this, cryptocurrency as an investment tool is losing its popularity among US crypto investors.
In any case, this is confirmed by a recent study by Bankrate (the American online resource of data and financial content). According to research findings, this disconnect is most pronounced among millennials. If 49% of this generation Y are in favor (or very favorable) of investing in cryptocurrency in 2021, this year that rate has dropped to 29%. However, this generational segment is very connected and especially open to new technologies (including cryptocurrencies).
Baby boomers are also beginning to decline
Baby boom investors are also skeptical, but to a lesser extent. Among cryptocurrency investors in this age group, 21% felt the ecosystem was trustworthy. This year, only 11% are convinced. For Generation X, the numbers drop from 37% to 21%. Across all generations, 35% of US investors still believe in the potential of crypto as an investment vehicle in 2021. This year, only 21% place some degree of confidence in the ecosystem.
Once again, the loss of digital asset values has been identified. On this point, Greg McBride, chief financial analyst at BankIt’s a lot easier to be passionate and believe in something when you can see the value keep growing. Now that the market is struggling, cryptocurrency investors have a different view of investing in digital assets.
The younger generations are more optimistic
The younger generations (Z among others and the most recent generation Y) still believe in cryptocurrency even after the crash. During the investigation, Bankrate tried to find out why. It seems that this class of investors is still working on the “hype”. In other words, they rely more on information provided on social networks, by friends and family than on the advice of investment experts. This way of taking things lightly partly explains this optimism.
By comparison, older investors are afraid of volatility encryption. At the same time, they see a lack of regulation and transparency, which is holding them back. For their part, young cryptocurrency investors are not really aware of the risks of their investments. “A lot of young investors don’t understand what they’re buying, but they can see the price going up, and so they want to get involved,” says James Royal, Bankrate’s chief correspondent.
Although the perception of some cryptocurrency investors has changed somewhat, digital assets are still new trolley investment in making. Just keep in mind that this is not a lottery. Wealth is built over time and speculation takes real discipline.
Get a summary of the news in the cryptocurrency world by subscribing to our new serviceDaily and weekly so you don’t miss any of the essential Cointribune!
I accidentally stumbled upon the crypto world and witnessed the birth of a new era, the DeFi era. It’s all about economic freedom, transparency and opportunity for all. This is a world worth knowing.