According to a report by Mode Banking, a Bitcoin banking app, Gen-X is the one at the forefront of Crypto investments. The report states that Bitcoin investments have been doubling every month since February 2020 among Boomers and Gen-X, indicating wider crypto adoption.
Typically, we expect new technology to have an adverse impact on the older generations. So why does Crypto, which is a relatively newer industry, gain such traction from people in their golden years? Read on to find out.
Why is Cryptocurrency Getting Popular Among Gen X?
Nigel Green, the CEO of deVere Group, affirms cryptocurrency investments by baby boomers and Gen-X continue to grow. This observation comes from an international poll of clients aged over 55 in which 70% of those surveyed had already invested in digital currencies or were planning to do so in 2021.
This survey revealed that Boomers and Gen-X are just as excited about digital currencies and recognize that digital, borderless money is the way forward. The respondents mentioned a major factor for their interest in crypto is the extraordinary levels of money printing as central banks across the globe attempt to sustain their economies post-pandemic.
Gen-Xers are aware that if the market is flooded with extra money, then it devalues traditional currencies. Along with this, the threat of inflation is a genuine concern, prompting them to look for alternatives.
That’s why almost 41% of Gen-X believes cryptocurrency will be very or somewhat widely accepted in America in the next 10 years.
Impact of COVID-19 on Gen-X’s Crypto Investment
Experts have called the COVID-19 pandemic a major reason that made people of all ages realize just how useful crypto technology is and the impact it has during such a crisis. Where everything else is uncertain, perhaps crypto is the answer.
Everybody knows that FIAT money (not backed by gold) is regulated while Cryptocurrency is mostly not. Perhaps this is the reason that has persuaded Gen-Xers to shift to the digital side.
The research also compared the average month-on-month (MoM) growth of crypto investments among different generations before and during COVID-19.
In the pre-COVID-19 months, Gen X’s investments grew almost twice as slow as those of younger generations (61% vs. 118%). However, during the pandemic, Boomers and Gen-X accelerated their crypto investments much more than Millennials and Gen-Z, narrowly closing the MoM growth gap (107% vs. 125%).
Baby boomers and Gen-X, who own most of the world’s wealth, are embracing the cryptocurrency revolution, especially after the COVID-19 pandemic. This is mainly because of crypto’s reputation as ‘digital gold’, as much like gold, cryptocurrency is a non-sovereign, decentralized medium of exchange