83% of millennial millionaires own cryptocurrencies, 48% plan to increase their holdings next year: survey

  • A millionaire Survey conducted by CNBC shows that 83 percent of millennial millionaires have invested in cryptocurrencies, and 48 percent plan to increase their holdings in 2022.
  • Concerns of inflation and US government dysfunction seem to drive these financial decisions among the cohort.

The millennials demographic group (1977-1995) has shown the highest interest in cryptocurrencies as an investment and store of value. And among them, millennial millionaires are leading in the investment of the relatively nascent financial industry.

According to a fresh report of the CNBC Millionaire Survey, 83 percent of millennial millionaires have invested in cryptocurrencies. Roughly 48 percent of them have plans to increase their holdings next year. Only 6 percent expect to cut their stash.

Additionally, 53 percent of millennial millionaires have allocated more than 50 percent of their portfolios in cryptocurrencies. A third (about 33 percent), have 75 percent or more of their wealth placed in crypto assets.

Cryptocurrencies function in inflation, and US government dysfunction

The survey also covered varying market sentiments in different areas of the economy. The results show that millennials have two primary concerns when it comes to economic growth. They are inflation, and US government dysfunction, with each taking up 23 percent of the total.

Most millennials, the results note, believe inflation is a permanent phenomenon, and 45 percent of them have given it greater concern. Nonetheless, this generation is quite optimistic about the Fed’s ability to manage inflation at a 59 percent confidence level.

Of note, the survey shows how differently millionaires perceive the threat of inflation compared to the rest of the population. As CNBC’s Wealth Editor, Robert Frank explains, millionaires tend to worry about the effect inflation will have on interest rates and consequently, on their investments. Differently, the rest of the people are more disturbed by the increase in prices associated with inflation.

Millennials lead in generational interest in crypto

Increased millennial interest in cryptocurrencies is shown by comparing this survey to one published by the same media outlet in June. The earlier survey showed that about 50 percent of millennial millionaires had invested at least 1/4 of their wealth in cryptocurrencies. 30 percent of them had at least half of their portfolio in crypto. This portion has since risen to 53 percent, even while the market remains on a multi-week correctional state.

Related: Survey: 11% of young Americans bought crypto with their stimulus checks

And as one climbs up the generational ladder from millennials, the crypto hype seems to fade away. An August survey reported by CNF shows that Xennials, or those around 40 years of age, had 9.2 percent of their funds in digital assets. Generation X, preceding millennials, had just 6.3 percent allotment.

The enthusiasm for this asset class dwindles even further among the Baby Boomers (1946-1964) and earlier generations. The top 10 percent of this cohort has a non-trivial 10 percent average invested in Bitcoin and other cryptocurrencies.

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