Millennial Millionaires Recognize Crypto as an Investable Asset, CNBC’s Online Survey Suggests

There is a huge disparity between generations who invest in crypto, and it’s true across the world

By
Chung Yee
on
June 14, 2021
Category:
Blockchain News

The New Asset Class

Millennials, those born between 1981 to 1996, are finding a safe haven for investment in a new asset class and are handsomely rewarded for their conviction. Cryptocurrencies and blockchain are now trending keywords across the internet and on all social media platforms. In an online survey by CNBC, titled ‘CNBC Millionaire Survey’, the result from 750 respondents shows that about 47% of those surveyed had more than 25% of their wealth in cryptocurrencies. Nearly half of those surveyed also own Non Fungible Tokens (NFTs)

In the online survey by CNBC, nearly half of millennial millionaires have at least a quarter of their wealth invested in crypto. Early adopters of cryptocurrencies are rewarded with substantial gains bringing them into the millionaire’s club.  

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In another survey, carried out last year by Vorhaus Advisors, commissioned by Forte–– a blockchain-based platform for developers, players, and fans––shows that understanding of the blockchain technology for millennials is as high as 42%. Although cryptocurrency and blockchain are not the same, they are related. Blockchain is the technology that enables the existence of cryptocurrencies. These findings are a similar population result that equates to the investment numbers. Those who understand are investing. 

In another article by the South China Morning Post, a similar phenomenon is also taking place in China. Millennials despite the harsh restrictions imposed by the government are finding ways to land their hands on cryptocurrencies. The motivation for crypto-asset accumulation is spurred by the same aspiration. It is seen as a new method to accumulate wealth at a time when the industry is still young. 


A New Avenue for Wealth Management

The traditional wealth management industry deals with securities like stocks, bonds, and private equity. However, with the current crypto boom, the younger generation of clientele seems to bring a different set of mechanisms to leverage their assets and grow wealth. Custodial services, staking services, and compensation schemes that revolve around crypto assets are becoming some of the fastest-growing industries globally. 

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It is easy to understand how cryptocurrencies have a deeper association with millennials. The idea of digital currency has its appeal. It is a form of online liquidity that is easier to transact than physical currency. This has created a generation of early adopters amongst the millennials. 

In the early days of Bitcoin, it was not openly traded. A closed-loop of gamers exchanged Bitcoins just like how teenagers would trade their sports cards. Blockchain has been an easier entry for those from the gaming industry because gamers are already used to the idea of tokenization. Games developed in the earlier days featured applications of virtual currency and when games evolved, and so did the crypto industry. 

This emerging class of millionaires will grow in numbers as the crypto markets expand and more countries create their own regulatory framework around the crypto industry. Trading, custody, and use of crypto assets will soon be seamlessly integrated into the existing financial framework allowing better accessibility into the ecosystem. 


The Generational Gap 

The CNBC survey also shows that the older generation of millionaires are less receptive to cryptocurrency as part of their portfolio and only 1 out of 10 have more than 10% of the wealth stored in cryptocurrencies. The percentage of stored wealth in cryptocurrencies dropped further for the baby boomer millionaires. 

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The older generation of wealth is built around the traditional investment market. The idea of creating tokens and giving value to them without the backing of a sovereign central bank seems fantastic. In traditional media, cryptos like Bitcoin have been linked to insidious activities like trading on the now-defunct online marketplace, ‘Silk Road’. 

These concerns are a hard reputation to break. They have stamped a lasting impression on older generations that cryptocurrencies are dubious. Older investors also usually prefer safer more secure investments and crypto also has shone exposure to rug pulls and attacks. Along with the barrier of technology, the world of crypto has not been nearly as attractive as to older generations. 

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Negative Image Eroded With Time

The false narrative and wrong association of cryptocurrencies with illicit activities are diminishing. Mainstream voices are beginning to see the transformational truths behind blockchains and crypto. This is a natural progression as the world starts to learn about blockchain and crypto-assets. Having a better understanding of technology and the aspiration behind it is an advantage that millennials have. 

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Chung Yee

Chung Yee has a legal background and has been involved in research works for the legal and compliance industry. Writing is his passion, centered on topics such as the blockchain and finance. His largest crypto holdings are Solana, Ethereum, and BNB Token.

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