Americans Choosing Crypto Investments Over Traditional Savings Account: New Survey
More Americans are opting to put their money into crypto investments instead of depositing into traditional savings accounts, according to new research.
The Morning Consult says to “prepare for the 2022 crypto boom” in it’s latest analyst report, asserting that “Cryptocurrency ownership continues to rise, buoying crypto-related brands in the process.”
As per the report, crypto investments have become more popular than certificate of deposits (CDs). A CD is a traditional financial product, ostensibly an agreement between an individual and a bank to lock up one’s money for a fixed amount of time in exchange for an interest rate.
“Nearly 1 in 4 consumers (24%) in our recent global survey reported household ownership of cryptocurrency, up 2 percentage points from July. Latin American countries still have among the highest rates of cryptocurrency ownership, but European nations Germany, Spain and the U.K. have grown significantly in the past six months.”
Morning Consult says that crypto ownership surged in July of 2021, suggesting that investors were taking advantage of the big discounts in the market. Demographically, high earning millennial men dominated the space, while baby boomers remain mostly disinterested in the crypto. The study says that baby boomers' crypto ownership has ranged sideways for over a year while millennials continue to pile into digital assets.
The research also suggests that a surging interest in cryptocurrency doesn’t necessarily mean an abandonment of the traditional system. On the contrary, crypto enthusiasts “are more likely than the general population to use multiple financial services providers.”
“As leaders at traditional financial institutions seek to understand the future of cryptocurrency and their role in it, they should focus closely on the habits and attitudes of current cryptocurrency owners and look for ways to meet their needs.”
The report says to “look for continue adoption of cryptocurrency and related brands” over the next year as brands and younger generations lead adoption. Morning Consult warns skeptics that “cryptocurrency has proved to be more than a passing fad,” and that “it will continue to gain consumers’ attention and share of wallet in 2022.”
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.