Low Millennial Financial Well-Being Set To Be a Driving Force For Crypto Adoption
Millennials are likely to head towards alternative financial services and assets like crypto. As younger generations join the cryptocurrency bandwagon, researchers anticipate even greater adoption of cryptocurrency in 2022.
Millennials are not interested only in doing videos on a social media platform like TikTok or finding a “quick way how to make money online.” Data reveals that Millennials in the U.S. are increasingly more heading towards alternative financial services like bitcoin to improve their financial balances.
A report named The State of Customer Banking & Payments released by Morning Consult in January found that Millennials are embracing modern technologies to help them make financial decisions more than any other generation.
The writer of the report, financial services expert Charlotte Principato, collected data from 50,000 different participants to monthly surveys performed in the United States and worldwide from July to December 2021.
Principato mentioned in an email to Cointelegraph that the increase in usage of cryptocurrencies in 2021 was an outlier among the statistics that caught her eye when preparing the report.
By December last year, around 48% of Millennial individuals owned cryptocurrency, up from just about 30% in June. During the same period, 20% of all adults in the United States admitted to holding cryptocurrencies.
Source: Morning Consult
Millennials’ use of alternate payment services such as cryptocurrencies may be because they struggled with financial well-being scores that kept standing lower than the nationwide standard since June 2021, the report claims. The global standard by last December was 50.98, but the Millennial generation was standing lower– at 49.54.
Principato told Cointelegraph that lower financial well-being scores were a pattern she observed over the past seven months. She attributes the decline to the new variants of the COVID-19, and increased inflation in the United States, which is yet to be fully recovered.
Source: Morning Consult
Morning Consult’s website says that the financial well-being score is identified by a scale that “includes 10 questions for gauging present and future security and freedom of choice, touching on consumers’ control over their finances, their capacity to absorb financial shocks and their trajectory to meet their financial goals.”
Bottom line: Millennials to boost crypto adoption for 2022
While Millennials, generally, lead the way, crypto holders are disproportionately high-earning Millennial men. 70% of Millennial males use crypto, with 25% of them earning over $100,000 per year.
Remarkably, Hispanic people have a higher rate of crypto usage than their representation in the general adult population. Around 16% of all U.S. adults are Hispanic, however, they make up 24% of all crypto users.
As cryptocurrency became more popular throughout 2021, respondents from every generation– from Baby Boomers, Gen Xers, Millennials, and Gen Z– were increasingly likely to consider purchasing cryptocurrencies from exchanges in the United States.
These findings lead us to conclude that cryptocurrencies will keep blooming in 2022. The further adoption of crypto and onboarding of younger generations will be two major aspects that may lead to a potential boom.
