(RepublicanNews.org) – Recent events sowed uncertainty in America’s financial future, prompting a rise in a questionable trend across younger generations. While individuals over 50 continue to use 401k plans to strategize for retirement, millennials and Gen Z are turning to cryptocurrency for financial security instead.
— SwissOne Capital (@Swissonecapital) April 19, 2022
A recent survey from Investopedia asked 4,000 Americans across four generations about their financial habits. According to the data, nearly one-third of Millennials (age 26 to 41) are investing in cryptocurrency for retirement. Up to 20% of Gen Z (age 18 to 25) respondents are taking the same path.
Respondents within both age groups also strongly feel their cryptocurrency investments will yield more in the future than other assets such as real estate, stocks, and mutual funds.
Those belonging to the Gen Z age group also expect to retire sooner than others, with expectations to stop working around 57. Meanwhile, Millennials are looking at a retirement age of 61, Gen X, 64, and Baby Boomers, 68. Those who are 18 to 25 see cryptocurrencies as a way to make more money faster and retire at a younger age.
All of this crypto madness raises an important question: Is it a wise approach? Investopedia’s editor-in-chief, Caleb Silver, warns that overreliance on cryptocurrency offers unique dangers. He worries about the lack of knowledge about how these currencies work and how to invest in them, citing that no industry regulations exist.
The younger generations seem happy to take those risks in stride in hopes of a bigger payday down the road. But how many will succeed? That’s a tricky question to answer. Crypto is, by its very nature, volatile and high risk. Sadly, that means failure is just as likely an outcome.
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