Crypto isn’t just a buzzword thrown around by tech geeks and financial pundits; it’s become a household topic. From grandmas (or ‘Boomers’) to pre-teens (or ‘gen Alpha), everyone seems keen on getting a piece of the crypto pie. But why? What’s driving this cross-generational appeal?
Janine Grainger, Founder and CEO of Easy Crypto, weighs in on the mindset that’s motivating an increasing number of people, regardless of age, to purchase crypto.
The crypto drawcard
A recent survey revealed that only 20% of respondents believe that the only safe investments are those insured by the government. The ‘average Joe’ has started looking for alternatives and this growing scepticism has paved the way for crypto to flourish.
Because it’s ‘decentralised’ (or not reliant on a central, third party authority to operate – such as a bank), crypto offers a sense of control and security that traditional assets simply can’t. As distrust in traditional establishments reaches an all-time high, so too has the appeal of a currency that’s not controlled by any single entity.
This shift in mindset isn’t just limited to tech-savvy youths; it’s a phenomenon that spans generations, turning crypto into common ground for diverse age groups. Both the young and the old are questioning the status quo and are increasingly open to considering alternative assets to grow their wealth.
Shunning the ‘white picket fence’
For decades, the ultimate dream for many has been owning their own home with a ‘white picket fence’. This dream, however, is becoming increasingly unattainable for younger generations, unless they have intergenerational wealth. Millennials (or ‘GenXers’) in particular, are feeling the pinch. Faced with rising property prices and largely stagnant wages that haven’t quite kept up with inflation, they’re finding it challenging to climb (or even get onto!) the property ladder.
Instead of pouring their savings into real estate, many are turning to Bitcoin and other cryptocurrencies; swapping lawns for ledgers. Tellingly, just 16% of people believe they can invest a small amount in real estate over time; compared to almost 60% who believe they can do the same in crypto.
Digital currency offers a brand new kind of investment opportunity for a new generation – one that doesn’t require a hefty down payment or dealing with increasingly volatile mortgage rates. With crypto, they can invest as much or as little as they want, and potentially realise outsized returns (and conversely, risk) off the back of the asset’s relatively nascent growth trajectory.
This shift in investment strategy is also fueled by a desire for financial independence. GenXers are realising that they don’t need to follow the traditional path to achieve financial success and by embracing crypto, they’re taking control of their financial future in a way that suits their current economic reality.
Supercharging their super (retirement fund)
Boomers, on the other hand, are facing a different set of challenges with retirement on the horizon. Most are looking to maximise their savings in an increasingly volatile economic environment in which traditional asset classes have delivered underwhelming returns (when compared to digital currencies), prompting many to reconsider their investment strategies.
Conventional wisdom suggests holding onto investments for the long-term, but Boomers don’t necessarily have the luxury of time. With rising healthcare costs and longer life expectancies, Boomers are looking for ways to ensure their savings last. Rebalancing their portfolios to include crypto and the potential for higher returns, albeit risky, is a move many have begun to make.
From 11-year-olds dabbling in crypto (with the oversight of their parents or guardians) with their allowance money to 92-year-olds looking to diversify their retirement funds, the spread of crypto investors is now wider than ever. This broad appeal underscores a fundamental shift in how people view and approach investments – and crypto is at the forefront.
Next time you hear your gran or little brother talking about Bitcoin, don’t be surprised – they’re just riding the wave of a financial revolution.
Disclaimer: Crypto is volatile, carries risk and the value can go up and down. Past performance is not an indicator of future returns. Please do your own research.
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