20 Percent Of Rich Millennials Invest In Cryptocurrencies, Survey Finds


Millennials, or also known as Generation Y, are those people who were born in the early 1980s as starting birth years and the mid-1990s to early 2000s as ending birth years.

For a more widely accepted definition, millennials are those who were born between 1981 and 1996.

In 2019, this makes millenials roughly at their working age. At this year, they aren't too old for social media and the internet, as they can still keep up with the trends and be fluent about the ever-changing market, but also not to young to start thinking about the future.

And future here means investments.

According to a UK law firm Michelmores after surveying 500 affluent millennials, they concluded that rich youngsters with investable assets of £25,000 or more, invest in shares (37%), pensions or annuities (37%), or stocks (35%).

Similarly, at least a quarter of those surveyed said they that had invested in life insurance (30%), investment trusts (25%) or fixed income securities (23%).

Michelmores - Millennials, money & myths
Credit: Michelmores

Putting aside the arguably low amount of people surveyed, the company concluded that affluent millennials do have their own preferences when it comes to investing, and cryptocurrency is indeed getting traction for millennials.

According to the research:

"Remarkably one in five (20%) say that they have invested in cryptocurrency. Meanwhile, one in ten (11%) have engaged in peer-to-peer lending."

This number is a contrast to a previous survey by the FCA (Financial Conduct Authority).

"Stocks, shares, pensions and annuities are the most popular financial products among affluent millennials - yet investment in cryptocurrency is higher than expected."

"The survey result that 20% of those interviewed have invested in cryptocurrencies contrasts with a recent survey by the FCA which suggested a figure of 3% across the general population."

"This suggests a willingness amongst millennials to move away from traditional forms of investment and to embrace new technologies, almost regardless of the risks – perhaps part of a new identity for a new generation."

This is because affluent millennials are keen to explore investments independently, and to shift away from the financial behaviors of their parents.

And while millennials do have preferred choices when it comes to investments, their incidence of investing is still relatively low - with just 16 percent of respondents saying they have done so.

"Although a clear majority agree that they feel a responsibility to use their money to have a positive impact on the world (73%), only 16% say that they have actually invested in sustainable or social impact funds."

Cryptocurrencies are known for their volatile price. Bitcoin for example, reached its all time high back in 2017, to only drop to significant amount the next year, and slowly climbing in 2019.

"These results reveal some insight into millennial relationships with technology and financial advisors; whilst millennials are likely to use technology for their simplicity, level of control and objectiveness, it cannot yet
replace the level of assurance provided by an advisor."

"Supporting the trend that many of those surveyed have built their investable assets through saving, how they use their money also reflects this. 40% use their money to build up savings to act as an ‘emergency fund’."