Bitcoin has lost more than 70% of its value since it touched all-time high in November last year. Moreover, the top cryptocurrency has going through a bearish phase for past 6 months without any major upward movements lately. Neverthless, the millenians are not staying back from transacting their cash into crypto says a study by Bank of America. According to the report named Bank of America’s 2022 Private Bank Study of Wealthy Americans, wealthy millenians of age between 21-42 are continue to choose crypto as their preferred investment method.
As per the abovementioned study, the young wealthy people of age 21 to 42 consider crypto as the only high yeild investment product. Moreover, they believe that the traditional investment such as stocks and securities can not achieve above-average returns.
The report reveals that age is a dominant factor while it comes to inclinement towards opting cryptocurerncies as preferred investment product.
“While overall usage is low, younger people are 7.5 times more likely to hold crypto in their portfolios and five times more likely to say they understand it quite well. “
The younger people also understand crypto quiet well and confident in choosing crypto investment in comparison to relatively older millenials. The study shows that 32% younger investors assumes that crypto can be an efffecive long-term investment vehicle. Also, 35% investors of young generation believe that crypto can become a mainstream investment product in next 3 to 5 years. This report completey contradict the beleive of some notable econimist who forecast that 2023 will be end of crypto market.
Bank America bring forth another belwindering facts in relation to social media and adoption of crypto. The study reveals that majority of young cryto investors get their advice relation crypto investment from the social media platforms such as Reddit, Twitter, Tiktok and Instagram. In contrast, older investors rely on internet research and take advice of financial experts help devise a crypto investment plan.
While the major tech’s stocks has nosedived in double digitals in speculation of coming recession and high rate of inflation. Bitcoin has emerged as effective hedge against soaring inflation. Bitcoin price is picking up the momentum and recently hit $21,000, despite global market slump.
Gargi Sinha is working as Senior Journalist at Confea. She has completed her Masters in Journalism from Delhi University. She has interest in crypto and blockchain technology.