The Challenge Of Engaging Older Generations To Invest In Cryptocurrency
The launch of spot bitcoin exchange-traded funds ETFs in the U.S. this January is broadening the pool of bitcoin investors, with some interest in cryptocurrency emerging among older participants. However for now the most passionate crypto investors and the majority of Hodlers, those holding onto their assets tend to be younger individuals.
This trend makes sense as cryptocurrencies like bitcoin are not viewed as safe investments for baby boomers or retirees, unlike cash or municipal bonds. Yet if crypto can break through demographic barriers, it could gain further legitimacy as an asset class and be seen as a valuable part of investment portfolios.
Over time this shift could occur. As today’s younger crypto-savvy investors grow older, some may continue to engage with the asset class. However attracting older investors remains a significant challenge.
The Predictable Crypto Enthusiasts
Most crypto investors are men, particularly from the millennial and Gen Z generations. According to a recent survey, 50% of men surveyed expressed a strong or moderate likelihood of buying crypto in the next year, compared to just about 30% of women.
Age clearly influences why some individuals are hesitant to invest in crypto, as evidenced by concerns about regulations and technological complexities. The survey revealed that the main reasons non-investors cite for not buying cryptocurrency are security concerns, uncertainty about how to engage with it, and confusion about the purchasing process. Additionally some believe it’s a scam, while others are deterred by the lack of clear regulatory guidelines and issues exacerbated by the numerous scandals in the crypto space during 2023.
While ETFs may help alleviate some of these concerns, particularly regarding regulation and technology, data from the survey indicate that women, Gen X, and baby boomers are still hesitant to embrace bitcoin ETFs.
Crypto as a Retirement Asset
Although interest has declined from last year, survey respondents indicated they would consider adding digital assets to their retirement portfolios. This interest also varies by demographic.
The survey found that current and former crypto investors, particularly millennials, Gen Z, and men are the most inclined to incorporate crypto into their 401k’s and IRA’s. In contrast non-crypto owners, women, and older generations show the least interest in including cryptocurrencies in their retirement plans.
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Disclosure: I do not have any crypto positions currently.
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