Why do Millennials and Gen Z See Crypto as a Solution to Inflation?

If you were to learn that 94% of crypto owners are Millennials or Gen Zers, would you believe it?
At first, it may sound odd, but when you think about it – this group now represents anyone aged 18-40. Now that we have your attention, let’s see what their financial habits look like, in which conditions they work, and what’s their opinion on retirement.

Reading Time: 3 minutes

millennials in crypto

Illustration: Milica Mijajlovic

1 in 2 Millennials or Zoomers live paycheck to paycheck 

To understand why there are so many millennials in crypto and why they see the future of finance in it, first we need to have a clear overview of their dissatisfaction with the job market, working conditions, and the ever-widening wealth inequality

An extensive study from Deloitte, which included 14,808 Gen Zers and 8,412 Millennials from 46 countries, gave valuable insight into their attitude toward work: 

  • Nearly 50% live paycheck to paycheck. 
  • Around 35% of them prefer remote work in order to save money. 
  • Over ¼ of them think they won’t retire comfortably.  
  • 43% of Gen Zers and 33% of Millennials have another side job in addition to their primary one. 
gen z crypto

Photo Illustration: Freepik

Before we dive deeper into the topic, you should know that young people involved in crypto have contributed to quite a few trends, such as: 

  • Gamification of Trading – Every kid’s dream is to earn income while playing games. Cryptocurrencies and NFTs made that possible with play-to-earn games. 
  • Financial Influencers – Novice traders are usually educated by niche influencers, especially Youtubers who simplify crypto and encourage them to engage. 
  • Crypto Astrology – Some believe that studying celestial bodies can predict market oscillations and token collapses. 
  • Trading Addiction – Similar to gambling, crypto trading can get you hooked more easily, thanks to its accessibility and the hype within the community.  

Inflation as a Primary Driver for Millennials in Crypto 

Struggling with the cost of living is not just a sign of the times. But there are two things different today in comparison to a decade ago – we’re witnessing inflation and we have an alternative financial solution in a form of crypto. 

Consequently, the group that is most likely to adopt these new technologies and make changes in the future is the youngest one in the job market. In this case, Zoomers and Millennials. 

millennials investing

Photo Illustration: Freepik

But, let’s not assume anything.  

This is the most recent data from Gemini about who owns the most crypto: 

  • 41% of crypto owners started investing in 2021. 
  • In Europe, 2 in 5 started investing in 2021. 
  • 47% of those planning to invest in crypto are women. 
  • In developed nations, 1/3 of crypto owners are women
  • Europe has the highest number of crypto curious. 

In addition to that, another survey from AI platform Piplsay suggests that: 

  • 49% of Millennials own cryptocurrencies as compared to 38% of Gen Xers and 13% of Gen Zers. 
  • 88% of all crypto investments were made by college or master’s degree respondents. 
  • 53% of Millennials are very likely to purchase products or services using crypto as compared to 40% of Gen Xers and 7% of Gen Zers. 

Crypto as a Response to Financial Anxiety 

Following the rising inflation, many became concerned about their future and especially retirement. Having in mind the working conditions of Millennials and Gen Zers, a majority won’t have access to all retirement plans. 

That’s why they mostly rely on the following tools, as noted in one survey by a financial platform Capitalization

  • 45% stocks; 
  • 38% fixed retirement savings plan. 

Moreover, nearly half of all Gen Zers and millennials surveyed consider themselves well-informed about stocks, whereas significantly less percentage is knowledgeable about employer-provided saving plans. 

Not only that, but around 55% of them are planning to introduce crypto into their retirement savings. In comparison,only 20% of Gen Xers and 14% of baby boomers do the same. 

On the other hand, data collected by Stilt’s CEO and former Data Scientist Rohit Mittal shows that millennial crypto buyers in the USA have more debt than the national average. As Stilt interprets it, it’s mostly due to higher interest rates that come with credits available to this target group. That, along with increased costs of living when compared to older generations. 

“But, in spite of more limited access to credit and greater amounts of debt, Gen Zers and Millennials are still putting their money – and their hopes – into cryptocurrencies in a big way”, they conclude. 

A journalist by day and a podcaster by night. She's not writing to impress but to be understood.