According to a new survey, over half of millennial millionaires hold at least one-fourth of their wealth in cryptocurrency.
It comes at a time when virtual currencies are seeing unprecedented growth, generating wealth for both the young and those who trusted and adopted Bitcoin, Ethereum, and other cryptocurrencies early on.
According to the study, over 47% of the 750 millennial millionaires polled had more than 25% of their wealth in cryptocurrency. Not only that, according to the poll, over 33% of people with at least $1 million (approximately Rs. 7.31 crore) in investible assets held half of their worth in digital currencies.
The survey also demonstrates the wealth generational split between younger and older millionaires. For example, according to the poll, 83% of American millionaires have no holdings in virtual currencies, and only roughly 10% of them have more than 10% invested in crypto assets.
The younger generation, according to George Walper, president of Spectrem Group, which conducted the online millionaire poll with CNBC in April and May, jumped on cryptocurrencies early on when little was known about them.
“Even though the notion was fresh, the younger investors were more intellectually engaged with it. The majority of older investors and baby boomers were asking, “Is this legit?” According to CNBC, he said.
In a similar vein to Bitcoin, the NFT (non-fungible token) craze has swept the globe, particularly among the younger population. The generational disparity is much more pronounced, according to the same poll, especially when it comes to NFTs. Despite the fact that the majority of American millionaires have no idea what an NFT is, over two-thirds of millennial millionaires believe they will be the “next big thing.” Over a third of those polled believe NFTs are a “overhyped fad.”
Nearly half of the 750 millennial millionaires claimed they had NFTs, while 40% stated they didn’t have them but were considering getting them. Another group of millionaires, the baby boomers (those born between 1946 and 1964), owned no NFTs and had no intention of purchasing them. The reason for this, according to Walper, is that NFTs have just recently gained media attention. “As a result, older generations lag behind in terms of comprehension.”
The virtual currency hit an all-time high of about $65,000 (approximately Rs. 47.3 lakh) in April, a tremendous increase of more than 450 percent in just six months. Bitcoin values have plummeted since then, shedding more than half of their worth. Cryptocurrency trading in 2021 has been characterized by massive volatility.