In the collective imagination, cryptocurrencies are a “thing for young people”. However, a new study concludes that boomers would be wiser investors.
Why are boomers better cryptocurrency investors than youngsters?
Second In the minds, the typical profile of a crypto investor is a 35-year-old man, married, educated and earning a good living. Second a study15% of Americans in this generation invest in these new assets. Yet, counterintuitively, according to a new report from the platform cryptocurrencies Little by little and consumer research firm Toluna, would be the baby boomers best investors compared to millennials. How come ? Time for reflection and analysis! Indeed, the report reveals that baby boomers would be more cautious and would do a lot more research firstcommit their money. Thus, 34% of baby boomers would spend “a few days” studying a project before investing, or 50% more than other generations X, Y and Z.
More pragmatic boomers to evaluate the quality of a project
According to the study, boomers apply traditional market research methods garlic cryptocurrency projects. Therefore, baby boomers are more likely to focus their research on technical factors such as tokenomics (Token Economy), revenues, industry competitiveness or even the market capitalization (market capitalization). Of the analytical skills that would favor the boomers According to Nathan Thompson, senior technical writer at Bybit and responsible for the survey, “Cryptocurrency projects that resemble traditional investments have held up relatively well in the bear market. Investors have become more aware of the difference between protocols that issue tokens as a method of raising funds and those that produce revenue and share it with holders. So-called “real return” ventures are no different than dividend-paying companies, a logic that boomers would be familiar with and perhaps drive some of their investment decisions. »
In comparison, young Americans (who 64% study a project less than 2 hours before investing) are more likely to reputational value elements such as a charismatic founder or “website aesthetics”.
Stick to the facts, only the facts
An imbalance that could be explained by two main factors. The first concerns free time. Indeed, more likely to be retired or in any case freed from the constraints of family life (children to manage, etc.), the boomers would have more time to devote to their investment projects.
The second would be paradoxically linked to the use of social networks (Crypto Twitter) which, according to Nathan Thompson, could act as a source of disinformation. “Generations Y and Z are not really at an advantage when it comes to use social media to assess trends, because this is no longer a novelty. It’s Web2 and everyone already knows how to use them. Indeed, young people turn their familiarity with social media into a disadvantage by overestimating them as research tools, while baby boomers are more likely to stick to the facts. »