An inordinate number of Millennials are looking to line their pockets, or rather their investment portfolios, with cryptocurrencies, according to a recent study conducted by blockchain technology investment firm, Sustany Capital.
Cryptocurrency as a Long-Term Investment
The study, which surveyed 1,000 American adults, found that 88 percent of Millennials want to diversify their investment options with cryptocurrencies. Of those surveyed, 42 percent expressed interest in using cryptocurrency as a form of savings.
Sustany Capital also reports that more than 75 percent of respondents regard purchasing cryptocurrency as a financial investment, but the same number are concerned about the technology’s security.
When it comes to actually investing in cryptocurrencies, however, 75 percent of respondents said they did so in hopes of high profits. For those who haven’t yet invested in crypto, Sustany Capital cites lack of both knowledge and government regulations as barriers.
Why are Millennials Investing in Cryptocurrencies?
Looking beyond general investments in cryptocurrencies, Sustany Capital examined the most important criterion that consumers use when it comes to an initial coin offering (ICO). For example, Gen Z (59 percent) and Millennials (44 percent) considered the underlying technology to be the most important element when contributing to an ICO, followed by Gen X (33 percent) and Baby Boomers (25 percent).
On the other hand, a little more than 33 percent of Gen X consider the purpose of the project as the most significant factor when contributing to an ICO, followed by Millennials (12 percent) and Gen Z (6 percent). Half of Baby Boomers believe the team behind the ICO is the most important, compared to Millennials (13 percent) and Gen Z (6 percent).
Finally, Sustany Capital found that most respondents have heard of cryptocurrencies; however, nearly one-quarter claimed that they had no knowledge of blockchain technologies.
Christian Kameir, managing partner, Sustany Capital, said:
“To understand cryptocurrencies, you must first understand blockchain technologies. Blockchain technology–not cryptocurrencies–will impact most industries in profound ways.”
Cover Photo by Alexandr Bormotin on Unsplash