Millennials stop trusting cryptocurrencies Why is this
Crypto Trends & NewsPress Release

Millennials stop trusting cryptocurrencies: Why is this?

-Bitcoin and Ethereum saw big drops from their highs

-For many of them it is a means that resembles the lottery

-For a Bankrate expert, ‘crypto’ is not a traditional investment

Only 21% of Americans feel comfortable investing in cryptocurrencies. This is according to Bankrate’s September survey for 2022, which reflects that the percentage has fallen from 35% in 2021.

The greatest decline in trust occurs in the demographic cohort of millennials. And this decreasing trend is reflected in 50% of people between 26 and 41 who felt comfortable with investments in cryptocurrencies in 2021, while currently, only 30% continue to ensure the same. But this decline is not surprising, considering the disappearance of up to 2 trillion of these digital currencies.

The two main cryptocurrencies

Bankrate senior reporter James Royal explained to CNBC Make It the influence of the major cryptocurrencies: ” Agents of any of them are only fans when everything is going well, and when two of the main ‘crypto’s like Bitcoin and Ethereum are have plummeted more than 70% from their all-time highs, so there is little doubt that they are not at their best.”

Furthermore, he comments that this trend which is not very positive for the value of cryptocurrencies does not help when it comes to attracting more people to the sector. Young investors are attracted by an atmosphere similar to that felt when playing the lottery because they think that with ‘crypto’ investments they could make a lot of money in a short time.

“The only way to make money from this is to sell it to someone more optimistic or more naïve than you,” adds Royal. Because of this, he assures that ‘crypto’ cannot be included in traditional investment.

Great instability

“This is more like when you buy an arcade chip, hoping that later someone will pay more for it. This is why legendary investors like Warren Buffet will never have anything to do with cryptocurrencies,” says James Royal.

For their part, it is common for financial experts to warn about the danger of investing more money in this sector than one is willing to lose. There are no guarantees that a benefit will be achieved, and if not, the person could get into financial problems.

Alternatives with lower risk

For those looking for a less risky investment, Royal comments that there are currently several options that have been tested countless times. For example, he recalls that buying a Standard and Poor’s 500 fund regularly, and then holding on even if the economic outlook is unfavorable, has allowed many investors in the United States to amass great fortunes.

“It’s obvious that some people win the lottery, but wealth is achieved over time and is only available to those who become disciplined investors,” concludes Royal.

Latest Post

What Are The Different Types Of Cryptocurrencies Out There

    Leave a Reply

    Your email address will not be published. Required fields are marked *