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A recent survey reveals that a fifth of American Gen Z and Millennials own crypto-assets, while only 20% of them own real estate. Faced with skyrocketing property prices, younger generations are looking for alternative ways to build their wealth.
The young generation has focused on crypto-assets
Gen Z (ages 18-26) and Millennials (ages 27-42) are much more likely to invest in cryptocurrencies and NFTs, according to a financial planning survey conducted by Policygenius from October 16-19, 2023 among 4,063 American adults. than their elders. In fact, 20% of Gen Zers and 22% of Millennials own cryptocurrencies, compared to only 5% of Baby Boomers and 10% of Gen Xers.
This preference for alternative assets occurs in the context of difficult access to property ownership. Only 20% of young adults surveyed are homeowners, compared to 45% of baby boomers. The latter have largely benefited from real estate wealth in the past, an opportunity that new generations no longer have.
Myles Ma, an analyst at Policygenius, explains: “ Younger generations are diversifying their investments, especially into cryptocurrencies. This trend may reflect a greater propensity to take risks, but it is also the result of structural barriers such as a lack of affordable housing.”
Generational trend confirmed!
Since the Great Recession, it has never been harder to become a homeowner. While real estate accounts for nearly 50% of baby boomer assets, only 20% of young people own it.
This trend is confirmed on a large scale. In April 2023, Bitget showed that 46% of millennials in major economies own cryptocurrencies. In October 2022, Charles Schwab revealed that 50% of Generation Z and Millennials want to include digital assets in retirement, and more than 43% are already investing in them on the side.
Despite the complexities of modern finance, Generation Z and Y are “quite proud” of their management skills. A proactive approach that demonstrates their desire for independence and diversification beyond traditional investments.
Younger generations are showing creativity in building their legacy and shaking up conventions. If cryptocurrencies are clearly in their favor, this disruptive approach speaks volumes for their ability to adapt to current economic challenges.
But beyond the possible fad effect, this rush of young people towards crypto assets could be a very good foundation that will permanently transform the financial markets.
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I am passionate about Bitcoin, I love exploring the intricacies of blockchain and cryptocurrency and sharing my discoveries with the community. My dream is to live in a world where privacy and financial freedom are guaranteed for everyone, and I firmly believe that Bitcoin is the tool that can make this possible.
DISCLAIMER OF LIABILITY
The comments and opinions expressed in this article are solely those of the author and should not be considered investment advice. Before making any investment decision, do your own research.