There could be many different reasons for crypto adoption. It is a market for every generation since most people are making their investments in this particular sector. However, for the millennials, their reasons for investing could be a bit different for sure.
According to crypto news today world, there could be a major reason why millennials will be adopting cryptocurrency as their alternative means of income and it could be due to the low financial well-being that they might experience. Yes, the millennials all over the world might be definitely seeking some alternative methods and financial services which include the assets just like cryptocurrencies.
The generation that is currently young is jumping onto the crypto bandwagon and the leading researchers who have been making predictions about the crypto markets for a very long time have made another analysis for sure.
According to the expert analysts, there will definitely be a boom in the cryptocurrency market this particular year since the younger generation is interested in crypto investment. The data that has been gathered mentioned that the people in the USA are definitely looking for some alternate methods of financing.
The report with the title The State of Consumer Banking & Payments provided by Morning Consult in January made a discovery that almost all of the Millennials are trying to adopt fresher technologies in order to receive some sort of help in making different financial decisions in a better way when compared to the other generations. them make financial decisions at a higher rate than any other generation.
The report’s author, Charlotte Principato, who is a pretty well-known financial service analyst also combined some data from other respondents who participated in monthly surveys about cryptocurrency.
Principato stated in email comments to Cointelegraph today that the increase in the use of cryptocurrency in 2021 was an outlier among the statistics that jumped out to her while putting together the report. She said, “Although a volatile asset, cryptocurrency has successfully held the interest of consumers around the world and continued to grow.”
By last December, about 48% of Millennial households owned cryptocurrency, up from only about 30% in June. During the same time period, 20% of all U.S. adults reported owning cryptocurrency.
Millennials’ use of alternative financial services such as cryptocurrencies may be due to the fact that they suffered from financial well-being scores that remained “persistently lower than the national average” since June 2021, according to the report. The global average by last December was 50.98, but the Millennial group lingered at 49.54.
Principato told Cointelegraph that reduced financial well-being was a trend she noticed over the last seven months. She attributes the decline to “the Delta and Omicron variants, and rising inflation in the U.S., which has not fully recovered.”
Morning Consult’s website states that The financial well-being score is determined by a scale that “includes 10 questions for gauging present and future security and freedom of choice, touching on consumers’ control over their finances, their capacity to absorb financial shocks and their trajectory to meet their financial goals.”
While Millennials in general are the leaders, crypto owners are “disproportionately high-earning Millennial men.” 70% of Millennial men use crypto, 25% of them earning over $100,000 annually.
Interestingly, Hispanic people have a higher rate of crypto use than their representation in the general adult population. About 16% of all U.S. adults are Hispanic, but they account for 24% of all crypto owners.
As cryptocurrency became more mainstream throughout 2021, respondents from every generation polled from Baby Boomers, Gen Xers, Millennials, and Gen Z adults were increasingly likely to consider making purchases from U.S. exchange Coinbase.
The results from the report led Principato to conclude that “Cryptocurrency will boom in 2022.” The report stated that the adoption of crypto and onboarding of younger generations will be two main factors leading to the boom.