Bank of America discovered that crypto is more popular among younger investors than it was for older investors. “If the youngest cohort isn’t confident in stocks, where do they see opportunities for investment growth? They have other options, like cryptocurrencies. 1 choice,” the bank wrote.
The Cryptocurrencies are preferred by Young Wealthy Americans to Stocks
This week, Bank of America published its 2022 Private Bank Study of Rich Americans. This report highlights results from an online survey of 1,052 individuals aged over 21 who had household assets greater than $3,000,000 and was conducted between May and June. Bank of America did not consider the respondents to be clients, but rather a national representative of U.S. high net-worth individuals.
“Conventional investment advice suggests that younger investors hold more stocks, not fewer, than older investors. Yet the 21 to 42 age group holds just a quarter of their portfolio in stocks, compared with 55% of investors aged 43 and older,” the report details, noting:
If the youngest cohort isn’t confident in stocks, where do they see opportunities for investment growth? They have other options, like cryptocurrencies. 1 choice.
“While 29% of younger people said crypto presents a leading opportunity to create wealth, only 7% of the older group agreed. The majority of the younger people are generally more optimistic.
more interested in private equity or debt, as well as sustainable or environmental, social and governance (ESG)-related investments,” the report adds.
Bank of America emphasized that age is “the dominant factor when it comes to interest in cryptocurrencies,” elaborating:
Even though overall use is not high, crypto ownership among younger individuals is 7.5 times higher than it was previously and five times greater to claim they are very familiar with the technology.
Furthermore, the survey found that “Half of the younger group said they turn to social media for guidance on crypto, compared with 30% of the older group.”
How do you feel about Bank of America’s results? Comment below to let us know your thoughts.
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