About 60% of Americans believe investing in digital currency is a risky endeavor — a 15% increase from 2021. Crypto remains among the least popular investment option, states a survey, with just 10% saying they invest in the digital assets.
What Happened: The findings, uncovered in the recent CNBC Make It: Your Money survey, conducted in partnership with Momentive, reveals that only 26% of Americans see it as moderately risky. With the potential of high returns, many investors are still cautious and uncertain of the long-term security of their digital investments.
See More: Best Crypto Day Trading Strategies
Younger generations appear to be more open to taking on the risks associated with investing in cryptocurrencies like Bitcoin BTC/USD, Ethereum ETH/USD and Dogecoin DOGE/USD than their older counterparts. According to the survey, nearly four in 10 Gen Z people (25 and under) and about half of millennials (age 26 to 41) think that investing in crypto is highly risky.
With Gen X-ers (age 42 to 57), the view is more conservative with six out of 10 deeming crypto investing to be high risk. This more risk-averse attitude is even pronounced among the baby boomer and silent generation (age 58 and up), with 80% of them labeling crypto investing as high risk.
Why It's Important: The crypto market was rocked when FTX, one of the world's largest cryptocurrency exchange platforms, plummeted from its January $32 billion valuation to filing for bankruptcy on Nov. 11. Even more distressingly, another firm, BlockFi, followed suit just days later and filed for bankruptcy on Nov. 28. The potential for further losses makes the outlook for the cryptocurrency market uncertain, with even more questions arising as investors struggle to make sense of the recent crash.
Crypto is lagging behind other investments, according to the survey, which shows that only a small amount of Americans have invested in it. Millennials remain the most crypto-savvy generation with 15% of respondents owning crypto — much higher than the 12% of Gen X-ers and Gen Z-ers, and significantly higher than the under 5% of baby boomers and the silent generation.
Price Action: At the time of writing, apex crypto Bitcoin was trading at $17,163, up 1.50% in the last 24 hours, according to Benzinga Pro data.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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