Bank of America's Survey Says Youngsters are 7.5 Times More Likely to Hold Crypto
Bank of America Corporation
According to Bank of America study, younger generations are 7.5 times more likely than investors aged 43 and older to have cryptocurrency in their portfolios. Because they have no confidence in stocks, the younger generation of investors sees opportunities in cryptocurrencies. In fact, it is their top option as an alternative, the bank noted.
This week, Bank of America issued its 2022 Private Bank Study of Wealthy Americans. The research backs up an online survey of 1,052 people over 21 with at least $3 million in investable household assets found in May and June. The bank says that the people who answered the survey are a sample of the high-net-worth people in the country, but that doesn't mean that they are all Bank of America customers.
Traditional financial wisdom contends that younger investors hold more equities than older ones, not the reverse. But investors aged 43 and older have 55% of their portfolio in stocks, while investors aged 21 to 42 only have 25% of their portfolio in stocks, according to the survey.
Only 7% of the older people agreed, while 29% of the younger people thought cryptocurrency was a great way to make money. The study found that young people are often more interested in private equity or debt investments, as well as investments that are sustainable or related to ESG.
This isn't the first study to demonstrate that younger individuals are more likely to invest in cryptocurrency. This is due to their general knowledge of the subject. At the same time, millennials and Generation Zs are always more open to new types of investments than elders.
Because cryptocurrency is so unstable, it may be too much for an older person to handle. Even the overall concept is that as one gets older, one's portfolio should contain fewer risky investments. Who would want to lose half their fortune in market volatility at the age of 50? Because of these things, younger people are much more likely to add cryptocurrency to their portfolios.