A new survey has found that 47 percent of young millionaires have more than 25 percent of their wealth in cryptocurrencies. According to the CNBC Millionaire Survey, more than 33 percent of millionaire investors belonging to the millennial generation have over half their wealth in cryptocurrency.
As many as 750 investors with at least $1 million in investible assets were surveyed by CNBC and the Spectrem Group in April and May. Bitcoin had hit its peak price of $64,829.14 during that period before it fell off rapidly at the beginning of May.
The meteoric price rise and slough-off were both attributed to market factors, especially after announcements from Elon Musk regarding Bitcoin’s validity as payment for Tesla cars.
The survey reflected a growing generational gap especially when it comes to new asset classes like non-fungible tokens (NFTs) and cryptocurrencies. Younger investors managed to leverage rising trends in crypto and other digital asset classes to increase their wealth monumentally while older investors remained sceptical, the survey found.
Nearly 83 percent of the respondents had no wealth in crypto assets and only 10 percent had more than one-tenth of their wealth invested in cryptocurrencies and none of these belonged to the older generations.
“The younger investors jumped on it early when it was not as well known,” George Walper, president of Spectrem Group told CNBC. “The younger investors were more intellectually engaged with the idea even though it was new. Older investors and the boomers were largely saying ‘Is this legit?,” Walper added.
It is not just cryptocurrencies where the generational gap creates investment disparities. Digital assets like non-fungible tokens also suffer a similar fate. Most of the investors said, they don’t know what NFTs are, and 33 percent responded that NFTs are an “overhyped fad”. At the same time, more than 66 percent of millennial millionaires said NFTs “are the next big thing”.
Nearly half of millionaire millennials surveyed own NFTs and 40 percent say they don’t currently own an NFT but have “considered” it. That compares with 98 percent of baby boomer millionaires who say they don’t own any NFTs and aren’t considering it.