Nearly half of all baby boomers and Generation X already own cryptocurrency or are intending to buy it before the end of 2022.
The findings of a poll by deVere Group come in as the prices of bitcoin and others, including Ethereum, dipped this week due to inflation concerns and the policies of central banks to try and tame it.
The survey shows that 48% of the more than 700 clients polled said that they already had exposure to crypto or that they are actively planning to invest to some degree in digital currencies before the end of the year.
The respondents are clients who currently reside in North America, the UK, Asia, Africa, the Middle East, East Asia, Australasia and Latin America, all born between 1965 and 1980.
DeVere Group CEO and founder Nigel Green comments: “The survey confirms that older generations are increasingly recognising the massive potential of cryptocurrencies.
“It’s easy to assume that it’s just ‘digital native’ generations who are investing in digital assets, but this is not the case.
“Baby boomers and Gen X too are becoming ever more aware of the intrinsic value of digital, global, borderless, tamper-proof and unconfiscatable currencies in an increasingly tech-driven and uncertain world.
“Like the growing number of institutional investors – including pension funds, mutual funds, investment banks, commercial trusts and hedge funds – these older generations are starting to acknowledge that crypto is the future of finance and they don’t want to miss out.”
Due to the demographic cohort that was polled, the Green says it is reasonable to make several assumptions about the respondents’ motivations for their responses.
“We expect that many boomers and Gen X are increasing their exposure to crypto as part of a wider retirement planning strategy.
“Why? Because not only is Bitcoin already the best-performing asset of the decade, it will, due to its fixed supply, only continue to appreciate over the long-term.
“In addition, crypto exposure can typically deliver a legitimate diversification tool – which is how investors can seize opportunities and mitigate risk, especially during periods of higher volatility.”
Although he’s a long-time advocate for digital currencies, Nigel Green also warns that the sector is still highly speculative. “As this year has proven again, the crypto market remains known for its volatility. Therefore, retirees or those on the cusp of retirement need to bear this in mind and not over-commit, as this could put the wider retirement strategy in jeopardy.
“As ever, the best way to benefit from the huge potential of crypto is to seek professional advice,” he concludes.