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At the very least, the latest Bitcoin bull run has pushed crypto to the outskirts of mainstream investing. The exponential price rise, combined with growing institutional interest, reflected the widespread belief that digital assets are a valuable addition to investment portfolios. Furthermore, not only large-ticket investors, but also comparatively smaller portfolio holders, are looking into Bitcoin investments, and interest is growing by the minute.
A new study by Washington-based analytics firm Gallup revealed that Bitcoin investments by American adults having more than $10,000 in traditional investment vehicles tripled over the last three years. It increased from a 2% to a 6% portfolio allocation, indicating that Bitcoin is gradually gaining general acceptance and entering the maintenance market.
According to the second-quarter Gallup Investor Optimism Index survey, young adult investors are more likely to invest in Bitcoin. It was also discovered that 13 percent of those aged 18 to 49 owned Bitcoin, up from 3 percent in 2018.
However, it has been more difficult for BTC to gain traction with older investors, as only 3% of those over the age of 50 own the digital asset. However, the figure has tripled since three years ago, when it was only 1%. Nonetheless, this figure reflects the general scepticism that veteran investors have about cryptocurrencies.
There is also a visible gender disparity among investors, with male BTC investors accounting for 11 percent of those polled, while female BTC investors account for only 3 percent. Unfortunately, this confirms the general consensus from previous reports about female investors lagging behind. That being said, some reversal was being seen of late, with the same underlined by data from trading websites like eToro and Robinhood.
Overall, the critical tide for crypto appeared to be turning, with those who said they would never buy crypto dropping from 72 percent to 58 percent between 2018 and 2021. Similarly, the risk perception associated with cryptocurrency has decreased significantly over the same time period, despite the fact that it is still viewed with suspicion by the majority of people.
In any case, the proportion of surveyed investors who thought it was “very dangerous” fell from 75% to 60%, while 35% thought it was “considerably dangerous” and only 5% thought it posed no risks.
According to the aforementioned report’s conclusion,
“Large investments in bitcoin by well-known companies such as Tesla, Square, and Morgan Stanley may be giving it more mainstream credibility.”
Nonetheless, the age gap between young and old investors is unsurprising. Millennials are known to be the most enthusiastic about cryptocurrency because they are at a stage in their lives when they can take risks and are more open to new technology. Furthermore, the 2008 financial crisis served as a wake-up call for many of them, and they are still struggling to maintain faith in the current financial and banking systems.
The Gallup report’s findings have given impetus to the belief that the greatest generational wealth transfer in which millennials are set to inherit $68 trillion from older generations will be beneficial for Bitcoin. It is thought unlikely that gold, which has already declined in popularity, and other stocks and investments will receive the majority of this wealth as more millennials and Gen Z turn to alternative banking.
In fact, it was found in a recent CNBC survey that half of the surveyed millennial millionaires had invested at least 25% of their wealth into cryptocurrencies, while over a third of them had over 50% investments in crypto. Other surveys have also found that millennials are more likely to trust their dentist than banks and Wall Street.
As more millennials transfer their wealth from traditional banking to cryptocurrency, this impending wealth transfer could be one of the biggest revolutions in financial history, as wealth will be transferred not only across generations but also across financial institutions and systems.