The popularity of cryptocurrency as an investment vehicle is waning in the United States, according to a survey by Bankrate. The survey found that trust in cryptocurrencies has waned across many groups, with millennials losing 20% of their trust in the asset – and losing more trust than the other generation groups surveyed.
Investors are losing faith in cryptocurrencies according to banks rate
While cryptocurrencies are still considered a new investment vehicle in the current market, some believers in them are starting to lose faith. Poll conducted by Bankrate Offers The number of Americans who are comfortable investing in cryptocurrency has declined across generational groups.
Millennials, who have traditionally been open and connected to new technology like cryptography, have been one of the groups that has lost faith in cryptography. The percentage of millennials who were “very comfortable” or “comfortable” investing in cryptocurrency increased from 49% in 2021 to 29% this year.
However, other groups have lost faith in cryptocurrencies, with the same metrics going from 37% to 21% among Gen Xers, and from 21% to 11% among Baby Boomers. In total, only 21% had some degree of confidence in cryptocurrency as an investment this year, compared to 35% in 2021.
According to the report, this is the result of the recent decline in the cryptocurrency market, which was caused by the intervention of the Federal Reserve in the United States, which raised interest rates to combat inflation. Greg McBride, chief financial analyst at CFA and Bankrate, said:
It’s a lot easier to get enthusiastic and believe in something when you see the value constantly go up. The real test of belief comes when the chips go down, and many investors have realized that they now feel differently about investing in cryptocurrencies.
Why younger generations are more inclined to believe in cryptocurrencies
The report also attempts to reveal why younger groups are interested in investing in cryptocurrencies. These younger groups, including Gen Zers and Millennials, are said to be more inclined to seek financial advice from less-than-ideal sources such as social media and friends and family, rather than listening from sources such as actual investors.
Even with the loss of confidence in cryptocurrencies, those who still believe in them believe that crypto may make them billionaires in the future. A Harris Poll survey shows that younger crowds, including millennials and Generation Zers, are the most confident group in their ability to become billionaires through crypto.
What do you think about the loss of popularity of cryptocurrency in the US? Tell us in the comments section below.
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