Gen Z Takes The Lead In Long Term Crypto Investment

• • Many people are investing long term in cryptocurrencies and putting it in their retirement plans.
  • About 21% of Americans have crypto in their retirement portfolio.

Despite the recent volatility in the cryptocurrency market, many investors are still bullish on digital assets for the long term. However, a recent survey found that there is a generational divide when it comes to incorporating crypto into retirement plans.

The survey, conducted by GOBankingRates, found that 21% of Americans have crypto in their retirement plans. However, the percentage of investors who own crypto in their retirement plans varies significantly by age group.

Among millennials (ages 25-34), 29% have crypto in their retirement plans. This is followed by Gen Z (ages 18-24) at 28%. The percentage of investors who own crypto in their retirement plans then declines steadily with age, with only 8% of investors over the age of 55 saying they have crypto in their retirement plans.

There are a number of factors that could explain this generational divide. Younger investors are more likely to be familiar with and comfortable with technology, including cryptocurrency. They are also more likely to be risk-tolerant and willing to invest in assets that are seen as more volatile.

In addition, younger investors may have more time to ride out any short-term volatility in the cryptocurrency market. They may also be more likely to believe that cryptocurrency has the potential to provide long-term growth.

Older investors, on the other hand, may be more risk-averse and may be more concerned about the volatility of the cryptocurrency market. They may also be more concerned about the regulatory uncertainty surrounding cryptocurrency.

Ultimately, the decision of whether or not to include crypto in a retirement plan is a personal one. Investors should carefully consider their own financial situation and risk tolerance before making a decision.

Experts Weigh In

Jagdeep Sidhu, the lead developer and president of Syscoin, believes that it is important to have a broad range of assets in a retirement plan. He says that digital assets are a “huge investment opportunity” for young investors, especially those who are not retiring for decades.

However, Sidhu also warns that crypto is a volatile asset and that investors should only invest what they can afford to lose. He says that “blockchain ecosystems will serve as primary engines for the global economy” in the long run, but that it is important to be patient and not expect overnight gains.

Ric Edelman, a former independent financial advisor and founder of the Digital Assets Council of Financial Professionals (DACFP), says that he is not surprised by the findings of the GOBankingRates survey. He says that younger investors are more likely to be early adopters of new technologies, and that they are also more likely to be comfortable with the risk involved in investing in crypto.

Edelman cautions that crypto is a highly volatile asset and that investors should do their research before investing. He says that “cryptocurrency is not a get-rich-quick scheme,” and that investors should only invest what they can afford to lose.

The Future of Crypto in Retirement Plans

It remains to be seen how the cryptocurrency market will evolve in the years to come. However, the growing interest from younger investors suggests that crypto could play a more prominent role in retirement plans in the future.

As the regulatory landscape around crypto continues to develop, it is likely that more financial advisors will begin to recommend crypto to their clients. However, it is important for investors to do their own research and understand the risks involved before investing in crypto.