Millennials Prefer Bitcoins, While Older Cohorts Prefer Gold: JPMorgan

  • JPMorgan Chase has revealed that the older cohort of investors tend towards Gold, whereas the younger ones prefer to invest in digital assets.
  • According to the survey, 30% of the total examined millennials would rather invest $1000 in Bitcoin than investing in government bonds and stocks.
  • The boomer generation has always preferred buying gold bonds and selling equities.

The choice of investments varies across different groups of ages. The financial solution firm, JPMorgan Chase, has revealed that the older cohort of investors tend towards Gold, whereas the younger ones prefer to invest in digital assets. It is not a surprise because the boomer generation has always preferred buying gold bonds and selling equities. In contrast, the millennials or Gen Z people (demographic cohort who were born between the 1980s-2000s) have always been attracted to tech stocks and cryptocurrencies.

Young Cohorts Responsible for Low Volatility

A survey by Blockchain Capital, a crypto analytic agency, revealed that somehow Millenials are responsible for keeping the Bitcoin price up. According to the survey, 30% of the total examined millennials would rather invest $1000 in Bitcoin than investing in government bonds and stocks. The survey revealed that at least 42% of the Millennials were familiar with cryptocurrencies, whereas only 15% from the age group of 65 years and up. Cryptocurrencies like Bitcoin, Litecoin, and Ethereum are the most common investments by the Millennials.

Decentralised Nature Of Crypto Attracts The Millennials

So what attracts them from investing in virtual currencies: Firstly, because they are decentralised by nature, which means that they are neither controlled nor issued by any centralised entity. Hence, it is a step toward modernized capitalism. And secondly, the price volatility and the pace at which the value of cryptocurrencies is increasing day by day are pretty big reasons for such hype among the young people.

Boomers Continue To Spend Their Excess In Gold Bonds

The JPMorgan strategists say that the group of older people has continued to utilise their excess liquidity in bonds and equities as a result of which the investment flows for the same remained quite strong during June and July. Also, the retail holdings on gold-backed exchange-traded funds were up by approximately 46%. Further, the director of international trading at Mischler Financial Group Inc has affirmed that the involvement of young investors lessens price volatility and the irregular periods of trading.

A few days ago, Gold surpassed its previous September 2011 all-time high of $1,920. On 27th July, it reached as high as $1944 before facing subsequent pullbacks. On the other hand, top cryptocurrencies like Bitcoin and Ethereum have also crossed the $12000 and $350, respectively. However, a few days ago, they experienced a strong pullback in their prices. Consequently, Gold and cryptocurrency ETFs are seeing a strong influx in demand as both millennials and boomers are seeing them as an alternative for conventional investments.

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