Although most people under 50 have not heard much about cryptocurrencies, they are optimistic about their future. There is still much skepticism about owning crypto assets due to the lack of knowledge.
A recent survey by Quinnipiac University reveals that 43% of 1,936 American adults believe cryptocurrencies will become a dominant economic force. However, only 28% of the respondents said they have heard about crypto assets, and 38% said they know little about them.
By disaggregating the survey data by age, young people are the most bullish on cryptocurrencies. Fifty-five percent of 18- to 29-year-olds and fifty-three percent of 30- to 49-year-olds believe crypto assets will become a dominant economic force.
The thought of cryptocurrencies becoming a highly significant economic force diminishes with older Americans. Only 40% of people between 50 and 64 and 21% of those aged 65 and over also agree.
The results from the survey show that 1 in 5 Americans (16%) currently own cryptocurrencies. The remaining 74% said they have never purchased it, while the other 10% have had it in the past.
Osman Kilic, professor of finance at Quinnipiac University, stated that most people under 50 have not heard much about cryptocurrencies. However, they believe that they will become a dominant economic force in the future.
Why Younger People Are So Bullish on Cryptocurrencies
Most people under 50 see cryptocurrencies as a significant economic force. The marketing by the companies in the sector yields results since they target sports advertising to go mainstream.
Buying and selling cryptocurrencies on leading exchanges is as easy and affordable as trading stocks online. For that reason, younger investors turn to the Internet to learn about cryptocurrencies, which have become part of their finances.
A study by savings platform Capitalizes found that 56% of Gen Z adults and 54% of millennials include cryptocurrencies in their retirement plans.
What Cryptocurrencies Mean for a Growing Number of Investors
Believing that cryptocurrencies will become essential in the future and buying them are two different things. Only 16% of the respondents said they own them, 46% were not interested in them, and 43% did not understand them well.
Although a growing number of people know about cryptocurrencies, there is still much skepticism about owning them. According to Kilic, the lack of interest and knowledge also holds back young people, the most optimistic about their future.
In November 2021, the price of Bitcoin hit an all-time high near USD 69,000 before losing half its value in the following months.
The lack of regulation in the cryptocurrency market is also causing considerable concern. In early March, even US President Joe Biden signed an executive order to regulate cryptocurrencies. It would establish the first federal strategy on those assets and any future central bank digital currency (CBDC) in the United States.
Many financial advisors hesitate to recommend cryptocurrencies to their clients due to the growing concerns about those investments. However, people are increasingly interested in Bitcoin and non-fungible tokens (NFTs), among other digital assets.
By Alexander Salazar
