Why Millennials, Gen Z Support Crypto

Millennials and Generation Z support crypto over gold. A new generation of investors is rewriting the financial rule book in favor of digital assets. Demographics and sentiment are two powerful forces that, working in tandem, can move mountains – even those made of gold. Millennials and Gen Z’ers support crypto investments over gold and silver. In an environment of weakened trust in the current system, the self-custody of cryptocurrency is an easier solution than is self-custody of precious metals.

Financial advisor firm DeVere released the results of a survey of over 700 of its Millennial clients, which showed that two thirds of them prefer bitcoin to gold as an investment. This means that any new savings entering the market may be almost 70% more likely to be put in bitcoin than into gold.

“Millennials are to become an increasingly important market participant in the coming years, with the largest-ever generational transfer of wealth – predicted to be more than $60 trillion – from baby boomers to millennials taking place.”

— Nigel Green of DeVere-Group

This makes intuitive sense: Millennials are more comfortable with technology than their elders, and can probably grasp the potential more easily. And a Pew report last year showed that younger Americans are less likely to trust institutions than older generations. Recent events are likely to have weakened this trust even further, at a time when the savings rate of those millennials and Gen Z-ers fortunate enough to have kept their jobs through the pandemic is increasing.

New York Times article from early 2020 presented the millennial generation as focused on early retirement, which will concentrate their attention on long-term value that cannot be inflated away. Our world continues to shift towards tech and as millennials become a more dominant part of the world economy, we should expect Bitcoin to also take an increasingly influential role in financial markets, especially in regard to being a ‘recession-proof’ asset.

Why Not Gold and Silver?

All these factors make young people more likely to invest in inflation-resistant assets like cryptocurrencies. Most of the younger generation of investors have not witnessed a mania in precious metals, but they will see it– and when they do they will become more receptive to their investment potential.

Silver hitting $30 would be a psychological achievement and will attract millennials into mining stocks for the first time in their lives.

Store of value is the reason. In our current world climate, and when there is a serious crisis, gold and silver will be much easier to trade for daily essentials. Times are changing and soon the acceptance of Bitcoin and crypto will gain mainstream appreciation, and might become the most-favored and tradable asset.