An analysis by the financial services company – Bankrate – determined that American millennials are not as enthusiastic about cryptocurrencies as they were last year.

Around 30% said they feel comfortable investing in digital assets compared to 50% in 2021.

The latest change in trends

Younger generations, including millennials and Generation Z, are among the most active demographics in the cryptocurrency space. However, a recent survey revealed that the former had lost some of their passion for the sector.

James Royal, lead reporter for Bankrate (the company that conducted the study), recalled that about 50% of US millennials felt comfortable investing in digital assets last year, while this figure has now dropped to 30%.

In his opinion, most of the interest in 2021 was generated due to the historically high prices of Bitcoin, Ether and other assets. Many young people thought they could “make a lot of money quickly” and so they entered the ecosystem, Royals explained.

The Bankrate employee went further and argued that cryptocurrency investments are based on “the biggest fool theory”, in which one can make a profit only by selling their assets to someone who is willing to pay a higher price than the initial one. . As a result, “legendary investors like Warren Buffett” are critical of the asset class, Royals said.

He advised Americans to focus on the stock market, especially the S&P 500 index, if they want to preserve their wealth in times of financial crisis:

“Buying an S&P 500 index fund on a regular basis and then holding it through thick and thin has built the fortunes of many American millionaires.”

And although the trends in the US seem to have changed in recent months, residents of other countries (where the economy is in a state of crisis) have shown significant interest in cryptocurrencies.

For example, the worrying rate of inflation and political turmoil in Argentina and Turkey have pushed some people to invest in digital assets, particularly stablecoins.

Millennials Prefer Cryptocurrencies Over Mutual Funds

Another analysis this summer by investment firm Alto estimated that about 40% of Americans between the ages of 26 and 41 have some exposure to cryptocurrencies. The same number of people admitted to investing in individual stocks, while less than 35% own mutual funds.

Interestingly, in November 2021, when Bitcoin was trading near its all-time high price of $69,000, 36% of millennials said they wanted to receive half of their salaries in crypto assets instead of fiat.

Back then, Nigel Green, CEO and founder of the deVere Group, explained the excitement of young people as being the most intrigued by technological innovations and understanding the “enormous potential of digital currencies.”

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