Bitcoin represents a new hope for youthful investors; Here’s what the demographics show

A clear understanding of demographics provides valuable insight into strategy and policy. For crypto adoption, it is crucial because, beyond the numbers, there are stories unfolding around the world. Amidst the misunderstandings, limitations and uncertainty, interest in crypto adoption reveals a need for alternative investments.

Demographics are adopting crypto

Piplsay released a study showing that 49% of millennials and 13% of Gen Z hold or own crypto. Another study by Stilt showed that 76.5% of millennials (age 25 – 40) and 17.4%, who were Gen Z (age 18 – 24) own crypto. The two studies reflect between 62% and 94% of respondents as either millennials or Gen Z owning crypto.

In comparison, both studies highlighted lower percentages of Gen X ownership ranging from 4% to 38%, accounting for different regions. In particular, Gen X was lower in ownership, but they raised more capital per transaction. The average purchase for Gen X was $9,611, for millennials, $8,596, and for Gen Z, it was $6,120, based on the Stilt analysis.

It reflects higher interest among millennials and Gen Z, but higher access to capital for investment among Gen X.

While crypto has been labeled a youthful market, there is also significant investment among Gen X (ages 41 – 56). Why is this important to understand in today’s investment context?

Why it’s important

As different countries face economic pressures pending a recovery, investment is essential for all. For some, investments represent passive income. For others, investment is a hedge against future financial shocks. In other situations, investments represent financial freedom and value creation.

Saving for retirement, personal goals and interests is currently insufficient, with the looming threat of inflation and uncertain interest rates. One of the thoughts with great consensus among millennials and Gen Z is a desire to have money that works for them so that they don’t have to work for the money for the rest of their lives. Some statements like “chase the bag” are a daily mantra for many. They are all too aware of the impact of financial crises such as 2008/9 which affected multiple economies.

Conventional investments such as property and bonds have been out of reach for retail investors. This is because they largely require thousands, if not millions of dollars initially for any profitability. Their strict regulation has its advantages and disadvantages. They are still good avenues to explore and invest in terms of value creation.

Today, alternative investments such as cryptoassets have attracted interest by offering lower initial capital requirements and less documentation to get started. Furthermore, crypto assets provide a time advantage. This comes in two forms – full-time availability and options for deposits and withdrawals in minutes.

Stock markets are open within limited hours, often 9am–3pm, and closed at weekends. Crypto exchanges are open 24/7! In addition, with as little as $20 -$100, it is enough to start investing in crypto assets. This type of access strongly appeals to younger generations.

A new hope

The stock markets have facilitated value creation for millions of people in recent decades. It is easy to take for granted that crypto is continuously available, however. However, it is a great way for any investor to interact with the market at a time of their choosing.

Whether you’re Gen X, millennial or Gen Z with a 9-5 job, freelance job or remote work, it’s important to find access to different investment options. At the time of writing, the crypto market trades for 997 billion dollars. With 13 years since its inception, it is far behind compared to the total investment market worth trillions of dollars. The New York Stock Exchange (NYSE), for example, is worth $26.2 trillion – the largest exchange.

The crypto market is also in a bear year, which means that overall prices are in a downward trend. Although there is a lot of fear, it is the best time to invest in learning before capital allocation to crypto assets.

Few asset classes have drawn the younger generations as much as crypto. If the percentage of crypto owners remains young, it follows that there is much to be learned about the ambitions associated with these youthful futures.

Conclusion

The crypto industry is welcoming to retail investors. It is available via mobile applications 24/7. Amid a bleak outlook, there is new hope for both young and seasoned investors that they can grow with this industry as it evolves in the coming decades. Younger generations embrace it in hopes of securing their future or financial freedom. They are not afraid of it being called a fool’s game or a bubble. Older generations are not left out either.

If you can filter past the fear and learn during this bear market, you will be well positioned to enrich your investment journey.